Gas prices moved down yesterday morning but a rebound on oil & coal markets, in addition to two unplanned outages helped contracts to recover in the afternoon. The system opened long despite planned maintenance and a worker’s strike limiting flows into the UK; this helped to weigh on the near-curve at the start of the session.
Near-curve gas prices were bullish on Friday due to planned maintenance at Norwegian facilities which has limited flows via the Langeled pipeline into the UK. A strike by Total employees was also set to take place today, impacting production levels in the UKCS, while stronger coal offered support to the far-curve.
Maintenance at Kollsnes is scheduled to begin today which will reduce Norwegian flows by 20mcm, with a further decrease expected next week. Another Norwegian facility will also be undergoing maintenance over the same time period and this helped gas prices climb higher on Thursday, with bullish oil also a factor.
Gas prices eased down yesterday as commodity markets weakened; oil prices decreased due to a rise in US crude stocks, while coal was pressured down by Chinese demand fears. However, low LNG send-outs and planned outages in Norway limited some of the losses on the near-curve.
Gas contracts increased yesterday with support provided by a bullish overall energy complex. A drop in Norwegian and Russian supply into Europe also provided support to the front of the curve. However, gains were limited in the afternoon due to a slight drop in oil.