Strong demand helped to lift contracts across the near gas curve yesterday, while a rise in oil markets offered support to the rest of the curve. The prompt also found support from weak renewable levels and a cold weather forecast for today and over the weekend.
An expected drop in wind power and colder weather was expected to lift demand levels today, helping the prompt add to its price. The gains filtered through to the rest of the near curve, while contracts further out were pushed higher by a rise in commodities.
Gas prices were largely bullish on Tuesday, taking direction from a rebound in oil, a drop in LNG send-outs and a colder weather outlook. A lack of progress in terms of Brexit negotiations also impacted UK markets and the value of the Pound.
The UK gas system remained slightly oversupplied yesterday, weighing on the prompt, with an expected rise in wind generation today also applying bearish pressure. Colder weather limited losses further along the near curve, while contracts at the back of the curve were pressured down by weaker oil.