Gas and energy Prices are dictated by a number of factors including; the weather, technical outages, fuel markets and the economy. Here is an overview of key milestones over the past year which have resulted in strong price movements.
Gas prices moved higher on Wednesday afternoon due to a mixture of outages in Norway, reduced production in the Netherlands and upward movement on the oil market. LNG supply was weak due to a lack of scheduled deliveries, while flows via the St Fergus terminal were also lower, resulting in a tight system.
A cold start is forecast for May and a number of outages caused supply constraints, resulting in gains across the near-curve yesterday. However, below average demand levels resulted in an oversupplied system, limiting the upward movement. Further out, another rally in oil prices helped contracts climb higher, despite a drop in APi2 coal.
Unplanned outages in Norway continued to provide upward pressure on the near-curve yesterday, although below average demand levels limited the gains. Meanwhile, LNG send-outs were weak with deliveries to Europe expected to be infrequent in the short-term. Contracts at the back of the curve also moved higher, taking direction from rising coal and oil markets.
Unplanned outages in Norway helped gas contracts move higher on Thursday, with the upward trajectory continuing on Friday morning. A cooler weather outlook also offered support to the curve due to an expected rise in LDZ demand. Meanwhile, stable-to-bullish fuel markets continued to restrict any losses at the back of the curve.