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.
Following a bullish start, gas prices eased down as the session progressed with a long system and weakening fuel markets weighing on the curve. The IUK pipeline will remain closed until later in the month, halting exports and maintenance in the UKCS has also concluded, increasing available capacity. Meanwhile, the Pound strengthened against the Euro, further weighing on some contracts.
Gas prices increased across the near curve on Monday with support provided by unplanned outages and weak renewable power which will lift CCGT demand later in the week. The trend was also bullish further along the curve as coal, carbon and oil markets moved higher.
Gas prices moved down Friday afternoon on the back of a sharp drop in Brent as China could impose duties on American oil. EUA prices also fell to their lowest levels since May following this news. Weaker fuel markets offset the effects of a limited supply, with low demand levels also contributing to the bearish sentiment.