Gas prices moved slightly higher on Friday with expectations of winter weather this week and reduced LNG output contributing to gains at the front of the curve. Further out, contracts were pushed higher by recovering oil.
13th November 2020 | Posted by: Lawrence Carson | Market Analysis
Gas Power Market Close Market Close Gas markets had some hope yesterday as Norwegian offshore operator Gassco indicated that an unplanned outage on Tuesday at the Oseberg field, would be extended. However, the day ahead volume impact was listed at zero, thus failing to provide any significant support to prices. Bearish sentiment was generally seen across all markets yesterday. Unseasonably …
The outage at the Oseberg gas field offered support in the morning but the UK gas system remained comfortable throughout the session and near curve prices eased down. Meanwhile, commodities offered bullish resistance towards the back of the curve.
Gas prices eased down on Tuesday thanks to a comfortable supply/ demand outlook, with improved renewable generation expected to reduce CCGT demand. Movement at the back of the curve was more stable due to an increase in fuel and a stronger Pound.
Higher Gas-fired power demand offered some support to gas prices yesterday, although mild weather kept a lid on residential demand. LNG flows were at capacity and storage levels are full as we head into the winter months. Meanwhile, a recovering oil market helped to lift the far curve.