Gas prices moved down yesterday afternoon with a drop in carbon weighing on the far-curve. In terms of shorter dated contracts, bearish pressure was provided by warmer weather and improved renewables which weighed on demand.
Far-curve gas prices found support from a rise in coal, oil and carbon markets, while the near-curve moved down amid warmer weather and improved supply. Higher temperatures should reduce demand in the UK but there are fears that the heatwave could impact the cooling of nuclear facilities in Europe.
A warm weather outlook and an expected rise in Norwegian & LNG flows in the coming days helped to pressure down near-curve gas prices on Tuesday. However, weak wind levels led to higher gas-fired power generation, limiting losses on the prompt, while the far-curve displayed little movement.
Gas prices displayed mixed movement yesterday with near-curve contracts shedding from their price and the far-curve trading higher. A sharp rise in carbon offered support to longer dated contracts, while the warm weather outlook weighed on prompt prices.
Gas prices opened at a discount on Friday but recovered losses as the session progressed, with upward pressure provided by a rise in coal and oil. The system was close to balance but an expected rise in LNG send-outs helped to cap gains at the front of the curve.