Gas prices displayed losses across the curve on Tuesday as the system was oversupplied due to low demand and improved flows from Norway. The warm weather outlook is set to continue into the weekend, which further weighed on the prompt. However, downward movement at the back of the curve was restricted by a bullish outlook for coal and oil.
Gas prices displayed mixed movement yesterday with losses recorded at the front of the curve and gains further out. Warm weather continued to weigh on demand levels and Norwegian flows increased, contributing to a long system. Meanwhile, a sharp rise in oil prices was the cause behind upward movement at the back of the curve.
Gas prices moved higher during Friday’s afternoon session with direction coming from the oil market, with the latest OPEC meeting the main market driver. Despite the afternoon gains, the overall context at the front of the curve was bearish with healthy wind levels reducing CCGT demand and Norwegian flows increasing following the end of planned outages.
Gas prices displayed mixed movement on Thursday with an expected rise in Norwegian & UKCS flows weighing on contracts at the front of the curve, whereas far-curve prices displayed small gains despite bearish fuel markets. Strong wind levels and mild weather reduced demand levels, resulting in an oversupplied system which in turn pressured down the prompt.
Gas prices moved down on Wednesday as coal contracts weakened and improved renewable power reduced reliance on gas-fired generation. Outages continued to restrict Norwegian flows into the UK but the system remained oversupplied due to low demand and a halt in exports.