UK Gas prices this morning, have remained in line with yesterdays close. The UK system has opened short this morning, as Langeled flows have reduced following unplanned outages beginning in Kollsnes and Åsgard. Oil prices have dropped this morning as oversupply continues to add to the current global supply glut. Prices have dropped nearly $1 from yesterday’s peak. Yesterday, demand levels were above seasonal normal levels, this morning, it is pegged at 4mcm below seasonal normal levels, adding weight to the curve and limiting potential gains.
What specifically affected prices in the past week?
• Outages reducing imports.
• Short UK system.
• Rising Oil prices – a slowdown in the growth of rigs looking for crude in the US and strong refinery demand in China.
• Cooler outlook – increased wind levels, decreasing solar level.