Gas prices moved higher at the front of the curve as demand has increased this week, partly down to cooler weather in the UK. Longer dated contracts remained bearish, taking direction from weaker oil and coal.
Gas prices saw a mixed day of trading yesterday as the front of the curve found some support from a rise in demand, while the far curve was pressured down by a drop in oil. Some bullish sentiment was also provided by expectations of a gradual lift on lockdowns in Europe next month.
27th April 2020 | Posted by: Lawrence Carson | Market Analysis
UK gas contracts followed the broader markets lower, along with coal, power and carbon credits. Conventional and LNG storages in the UK and Germany are between 70-75% full as demand remains impaired due to the COVID-19 shut-ins.
Gas contracts continued to shed from their price on Thursday, with the larger losses displayed in the afternoon. Contracts were offered some support in the morning by a rise in oil but the front of the curve was dictated by healthy supply and storage levels.