Gas prices climbed higher on Friday with colder temperatures expected over the weekend and the start of this week. Low wind levels resulted in a sharp rise in CCGT demand, tightening the system and providing additional support. Further out, contracts were pushed higher by a rise in coal prices, with little resistance provided by oil markets.
Gas prices increased across the curve on Thursday with below average temperatures expected over the coming days. Unplanned outages and weak LNG send-outs also limited supply levels, offering further support. Meanwhile, oil and coal prices increased in the afternoon, helping to lift contracts on the far-curve.
Gas and energy Prices are dictated by a number of factors including; the weather, technical outages, fuel markets and the economy. Here is an overview of key milestones over the past year which have resulted in strong price movements.
Gas prices moved higher on Wednesday afternoon due to a mixture of outages in Norway, reduced production in the Netherlands and upward movement on the oil market. LNG supply was weak due to a lack of scheduled deliveries, while flows via the St Fergus terminal were also lower, resulting in a tight system.
A cold start is forecast for May and a number of outages caused supply constraints, resulting in gains across the near-curve yesterday. However, below average demand levels resulted in an oversupplied system, limiting the upward movement. Further out, another rally in oil prices helped contracts climb higher, despite a drop in APi2 coal.