The upward trajectory on the overall energy complex calmed yesterday, with both carbon and oil markets retracting some of their gains. This impacted the gas market and the majority of prices moved down despite high demand and tight supply.
An oversupplied system helped to restrict upward movement at the front of the gas curve yesterday, although demand remained above the seasonal norm and supply is limited this week due to planned maintenance.
Maintenance is taking place at a number of North Sea facilities, including the Troll gas field which offered support to prices during Monday’s session, as flows to the UK and Europe were hampered. Meanwhile, rising oil and carbon continued to provide bullish pressure further along the curve.
Calmer commodity markets and a milder weather outlook for the weekend and the start of this week resulted in downward movement across the gas curve on Friday. Improved renewable power generation was also expected, reducing CCGT demand.