Gas flows increase as prices decrease
NBP Natural Gas & GB Power Market Movement
Gas prices trended down on Monday on weaker demand and strong incoming Norwegian gas flows. This was despite an unplanned outage at the South Hook LNG terminal and the Oil price closing just over 1%. higher On Tuesday, a deficit of gas supply against UK demand resulted in prices gaining.
A drop in Norwegian supply contributed mostly to system tightness along with gas volumes from the UK being shipped to the continent through the interconnector pipeline. Contracts further along gained: the Oil price shifted upwards, caused by disruption to Libyan output. The GB Pound also faltered against the Euro on the Scottish Parliamentary vote.
Mid-week, the rising price trend lingered with higher demand, reduced LNG and Norwegian gas flows adversely driving. The Oil price continued to gain and the Pound continued to weaken on the triggering of Article 50 although currency movements did improve during the day. Although demand dropped on the penultimate day (thanks to hot weather) Brent Crude hit a (high) price point, one not seen in 16-days, on lower than envisaged U.S. crude stocks. The week overall closed higher because of more bullish trading days than not.
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