18th December 2018 | Posted by: Lawrence Carson | Market Analysis
Early gains were slashed in European gas prices on Monday due to an upward revision in temperature forecasts and comfortably supplied gas systems. Although strong EUA prices continued to be supportive for the gas curve on the back of the expiry of the Dec 18 contract.
Gas contracts climbed higher on Friday with support coming from the overall bullish trend on energy markets, with rising carbon the main driver of prices. Oil was the exception to the upward movement but failed to have much impact.
Gas prices climbed higher yesterday, with the larger gains displayed at the front of the curve. A colder weather outlook for the coming days offered support to the near-curve, however, a long system provided some bearish resistance. Further out, prices were pushed higher by carbon and oil markets.
Gas prices climbed higher across the curve on Wednesday, ignoring a healthy supply outlook and a weaker oil market. Instead, contracts found support from the expected cold stint and a rise in coal and carbon markets.
Gas prices climbed higher on Tuesday with the larger gains displayed at the front of the curve. A rise in coal and oil helped to lift prices, although an expected rise in wind generation weighed on the prompt as this should reduce demand for gas-fired power.