Gas prices displayed no clear trend yesterday with the prompt and winter contracts showing small gains and far-curve prices moving down slightly. Longer dated contracts ignored rising coal and oil markets, while the near-curve was supported by a higher demand forecast.
Gas prices were relatively unchanged during Tuesday’s session despite a sharp drop in oil prices and weaker coal. A cold outlook for December restricted downward movement at the front of the curve, while a balanced system offered little direction to the prompt.
An upward revision in the short term weather forecasts helped to weigh on contracts at the front of the gas curve yesterday, with Front-Month and the prompt showing the biggest losses, assisted by a long system. Further out, prices were pressured down by weaker coal and carbon, ignoring a small gain by Brent.
Gas prices eased down on Friday, pressured down by weaker coal, while carbon and oil markets were almost flat. A drop in demand also helped towards a long gas system which helped to weigh on the prompt. Temperatures for the remainder of the month were also revised higher.
Gas prices increased during Thursday’s session with the cold weather outlook acting as the main market driver at the front of the curve, with temperatures expected to fall 2-3°C below the seasonal norm. Meanwhile, a rebound on coal and oil markets offered support to prices on the far-curve.