Gas prices strengthened across the curve yesterday, dictated by high demand for gas-fired power, a colder weather outlook and a recovering oil market. Coal and carbon markets also continued to strengthen, adding to the bullish sentiment.
Gas prices were largely bearish yesterday apart from the prompt which increased on the back of an expected drop in temperatures and renewable power. Any losses recorded towards the back of the curve were limited by bullish coal and oil.
Low demand and improved supply helped towards an oversupplied gas system on Friday, resulting in losses on the prompt and the rest of the near curve. Sentiment further out was bullish as contracts followed oil markets.
The front of the gas curve moved down due to very healthy supply and demand levels which were significantly below the seasonal norm. On the far curve, movement was slightly bullish as oil and carbon continued to strengthen.