The end of maintenance at North Sea facilities offered bearish sentiment to the near gas curve during Monday’ session, with an upward revision in temperatures for the rest of the month and the start of June also a factor.
High demand and rising commodities helped gas contracts to close higher on Friday, rounding off a largely bullish week on the UK gas market. Demand for power also offered additional strength to the front of the curve.
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.