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.
The system was oversupplied during yesterday’s session thanks to mild weather, improved LNG send-outs and low demand for power. Downward movement could be seen across the near curve, while longer dated contracts were pushed higher by rising carbon.
Sentiment on the gas curve was little changed from last week, with low demand and healthy supply weighing on the near curve, although LNG send outs were limited. On the far curve, prices were pushed higher by stronger oil and carbon.