The spot market turned bullish yesterday due to the forecast of a significant drop in wind generation. The UK gas market saw an improvement in supply as well as a decrease in demand, although the downward movement could be limited by fluctuating BBL flows.
Supply levels were relatively low last week while consumption has steadily increased over the last fortnight; the spot market was bullish as a result. UK gas fundamentals saw very little change on Friday as lower BBL flows were countered by higher production levels.
There was little movement on the spot market yesterday and UK gas fundamentals also saw no major changes. However UK gas production is higher this morning with the St Fergus Mobil Terminal contributing the most which should see contracts turn bearish.
Spot prices made further gains yesterday due to a drop in wind generation and a number of outages at hydro plants. While gas flows via Norway have failed to improve this morning which should lead to higher September-13 prices, the oil market will also have an influence prices.