Gas prices displayed strong losses at the front of the curve, with the front-month hitting its lowest level for a number of years. Mild temperatures, full storage and a healthy LNG outlook heavily weighed on the gas curve, while fuel markets provided little direction to longer dated contracts.
Gas prices recorded losses on Monday, with milder weather, reduced gas-fired power demand and an improved LNG outlook heavily weighing on the prompt, with the downward sentiment transferring to the rest of the near-curve. Meanwhile, fuel markets were generally bearish, limiting any upward movement on the far-curve.
Gas prices displayed little change over the course of Friday’s session, with a drop in carbon offsetting the impact of rebounds on coal & oil markets. The short term supply/ demand outlook was also stable with an expected rise in Norwegian flows over the weekend, helping the system cope with higher demand.
Near-curve gas prices moved higher during Thursday’s session due to a tighter supply outlook; demand levels were pushed higher by colder weather, while additional flows into the UK were not forthcoming. Meanwhile, coal, carbon and oil markets continued to weaken, weighing on the far-curve.
Gas prices moved down on Wednesday, following global energy markets, with coal, oil and carbon all recording losses. A few near-curve prices were the exception to the bearish trend, with support provided by higher demand.