Gas prices were pressured down by a significant drop in coal yesterday, with oil and carbon markets also displaying a loss. Mild temperatures helped to weigh on the near-curve, although a drop in Dutch flows via the BBL pipeline limited losses on the prompt.
Gas prices eased down yesterday afternoon, with the larger decreases displayed at the front of the curve. Milder weather is expected this month and supply levels are healthy; Norwegian and Russian flows are strong, in addition to numerous LNG deliveries expected to dock in the next few weeks.
Gas prices were stable-to-bearish during yesterday’s session with fuel markets weakening further and the system close to balance. A drop in wind levels lifted CCGT demand which reduced available supply but a milder weather forecast limited the impact, with a busy LNG outlook also providing resistance.
Gas prices moved down on Friday with bearish pressure provided by a warmer weather outlook and healthy supply. The UK gas system was 20mcm long for most of the day despite higher residential demand. Fuel markets were also stable-to-bearish, helping to weigh on the far-curve.