Gas prices moved down on Tuesday with weaker stock markets and a drop in oil weighing on contracts across the curve. A decrease in both LDZ and CCGT demand, combined with comfortable supply also applied additional bearish pressure to the prompt.
Gas prices eased down on Monday with healthy supply levels weighing on contracts at the front of the curve. Improved wind levels reduced gas-fired power generation, while a milder weather outlook will result in a drop in heating demand. Meanwhile, weaker coal prices contributed to bearish movement at the back of the curve.
Gas prices displayed strong gains on Friday with the prompt climbing higher on the back of a sharp rise in demand levels. Norwegian flows improved slightly, providing some resistance to the front of the curve, while the far-curve found support from stronger coal and oil markets.
The UK gas system was balanced yesterday as Norwegian flows were rerouted to mainland Europe and storage injections increased, resulting in gains at the front of the curve. A gas field in the UKCS also suffered an outage, reducing output by 6mcm/ day. Healthy LNG send-outs capped the gains somewhat, while the far-curve displayed small losses due to weakening commodities.
Gas prices displayed strong losses yesterday with near-curve contracts pressured down by an oversupplied system. Healthy Norwegian flows and reduced exports helped the system remain 40mcm long throughout the session. Further out, contracts found direction from a drop in oil prices following a rise in US stocks.