Mild weather forecast helps gas prices

Forecasts of mild weather and increased Norwegian flows combined to ease gas prices on Monday.

All curve contracts posted day-on-day losses with the most considerable moves seen at the front-end. The April-24 front-month contract shed a huge 0.12p/kWh when compared to its previous settlement.

Expectations of mild temperatures over the coming fortnight likely helped. According to our latest 14-day demand forecast model, demand is expected to outturn well below seasonal norms until at least 22nd March.

Additional pressure perhaps came from an increase in nominations into the Easington and St Fergus terminals. According to offshore operator Gassco, flows to the UK rose by circa 3mcm/day when compared to the previous session, despite unplanned maintenance at the Nyhamna and Troll facilities (which combined to reduced available volumes by 30.5mcm).

Gas prices have opened relatively in line with their previous close at the NBP this morning, however many are yet to trade at time of writing.

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