Gas prices were provided with mixed sentiment yesterday as oil moved down, while coal strengthened; as a result far-curve prices ended the session with minor gains. Meanwhile, the front of the curve was slightly bearish as supply levels are expected to rise.
Near-curve gas prices moved higher during yesterday’s session and closed at a premium, with support provided by an undersupplied system. An outage at the Kollsnes processing plant and maintenance at the Troll field reduced flows into the UK, contributing to the undersupply. Meanwhile, far-curve prices followed oil and coal, closing down.
Gas prices displayed mixed movement yesterday, with an expected rise in gas-fired power helping to lift the prompt, while milder weather weighed on the front-month contract. Further out, movement was generally bearish as coal, oil and carbon displayed losses.
LNG shipments from Europe to Asia are expected to ramp up in the coming weeks which offered bullish resistance to the front of the gas curve on Monday. Further out, contracts were generally stable despite a rise in carbon and oil, while coal was unchanged.
Gas prices moved down throughout Friday’s session with bearish pressure provided by a drop in coal and oil. A number of contacts were due to expire and closed at a discount, while the supply/ demand outlook for this week is healthier, weighing on the prompt.