Gas prices continued to display a bearish trend yesterday as temperatures are expected to rise above the seasonal norm in the coming days, weighing on demand, while supply levels are very comfortable. A rise in carbon offered some support but this was offset by weaker coal prices.
Gas prices moved down during Tuesday’s session as the system remained oversupplied despite an increase in demand. Supply levels were comfortable, contributing to the long system, with healthy Norwegian & LNG flows.
Gas prices traded down on Monday with healthy supply levels and a milder weather outlook weighing on the near-curve, with the Front-Month contract displaying the largest loss. Further out, prices followed weaker coal and oil markets and also moved down.
Near-curve gas prices displayed losses on Friday as temperatures were above the seasonal norm, reducing demand levels in the UK. Coal also moved down which provided additional bearish pressure further along the curve.
Gas prices inched higher during Thursday’s session, with direction provided by the overall energy complex taking a bullish turn; coal, carbon, power and oil all displayed gains. Despite a healthy supply picture, additional upward pressure was provided by a colder weather outlook.