A number of LNG deliveries are expected to dock in the UK at the start of November but disruption at the Dragon terminal is set to cause issues throughout the month, offering some support. Despite this, sentiment remained bearish thanks to healthy supply, weaker demand and falling commodities.
Gas prices eased off during Wednesday’s session and followed downward movement displayed on overall energy markets. Maintenance at Kollsnes was also expected to be concluded today, relieving any tightness on the system.
A drop in wind levels and an expected reduction in Norwegian flows into the UK offered support to near curve gas prices yesterday afternoon. Meanwhile, weakening commodity markets helped to weigh on contracts further along the curve.
Gas prices decreased during Monday’s session, with seasonal contracts showing the heaviest losses. Supply levels remained healthy despite a slight drop in temperatures, while oil prices slipped on the back of weakening fundamentals across the globe.
News that production at Europe’s largest gas field, Groningen was set to be cut by 6% helped to lift gas prices at the back end of last week, ignoring healthy supply levels. Further out, prices found some support from a rise in coal and carbon markets.