Expectations of colder weather and limited renewable power continued to support the power curve yesterday, with demand for gas expected to be high over the coming week. Meanwhile, rising carbon and oil offered support to longer dated contracts.
Storage levels continued to deplete yesterday, with similar withdrawals expected for the remainder of the month; withdrawals are around 1mcm higher than they were this time last year. Prices went up as a result of tighter storage levels, combined with higher demand.
A reduction in Russian flows into Europe had a knock-on effect for the UK yesterday, offering support to contracts in the afternoon. Cooler temperatures continued to lift residential demand but an expected rise in wind generation today offered some resistance.
Rising carbon markets and expectations of high demand as we head into May helped gas prices climb higher yesterday. Reduced renewable power and cooler weather is expected next week but supply levels are healthy thanks to strong LNG send-outs.