Gas prices displayed strong fluctuations yesterday, with losses in the morning and recoveries in the afternoon. Putin’s comments in regards to a gas transit deal with Ukraine contributed to bearish sentiment at the start of the session, but uncertainty resulted in some buying action on energy markets later in the day.
Gas prices displayed further gains by the end of yesterday’s session despite a bearish open. Bullish pressure was provided by an announcement from Naftogaz, the Ukrainian pipeline operator which revealed that no gas transit deal will be agreed with Russia before the end of the year.
Gas prices continued to move higher yesterday, with near-curve contracts finding support from a short system, caused by increased demand levels. Meanwhile, the far-curve was pushed higher by stronger commodity markets, with coal, carbon and oil all displaying gains.
The majority of gas prices displayed a rebound yesterday, with the near-curve finding strength from an undersupplied system. Meanwhile, contracts further along the curve were pushed higher by a rise in carbon and oil.
Gas prices moved down on Friday, with some contracts falling by around 10%. Temperatures were above the seasonal norm and supply levels were expected to improve this week, helping to weigh on the near-curve, while the far-curve was pressured down by weaker carbon and power prices.