Gas prices closed at a premium on Thursday, taking direction from rising coal and oil markets. Fundamentals were little changed with Norwegian maintenance continuing to restrict flows into the UK, although healthy LNG send-outs helped to balance the system.
6th September 2019 | Posted by: Natalie Ormrod | Market Analysis
Gas prices closed higher on Thursday, making marginal gains in line with the broader energy complex which saw both coal and oil close higher day-on-day. Colder weather and a drop in Norwegian flows were supporting spot prices, although gains remained limited due to continuous LNG deliveries and strong wind power generation.
Gas prices weakened yesterday morning but any losses were limited by Norwegian maintenance and an unplanned outage. Supply into the UK was limited as a result but a healthier LNG outlook provided bearish pressure. Meanwhile, commodity markets moved down which helped to weigh on the far curve.
Gas prices eased down yesterday thanks to an oversupplied gas system despite on-going maintenance in Norway. A number of LNG deliveries are also expected to dock in Europe, while coal, oil and carbon markets weakened; resulting in strong bearish sentiment.