The system was short yesterday due to a significant drop in Norwegian flows following an unplanned outage, however, gas prices were bearish at the front of the curve due to a weaker demand outlook. Windy and milder weather should reduce demand, while LNG send-outs remained comfortable on the continent. Meanwhile, weaker coal and oil weighed on the far-curve.
Gas prices eased down across the curve on Tuesday, with weaker commodity markets helping to weigh on longer-dated contracts. The more significant losses could be seen at the front of the curve as wind generation forecasts were healthier and temperatures are expected to increase slightly.
Gas prices increased yesterday with support coming from the oil market which turned bullish following the weekend’s G20 meeting. An expected drop in temperatures also helped to lift the prompt and winter contracts, with additional upward pressure provided by a rise in carbon.
Gas prices moved down on Friday due to a weak demand forecast, as mild temperatures and healthy wind levels were expected this week which will pressure down both LDZ and CCGT demand. Further out, stable coal and carbon markets offered resistance but overall movement remained bearish.