“The gas system and linepack have remained short all day but this has provided little support to gas pricing. Gas contracts across the curve opened higher this morning with buoyant oil pricing but have fallen throughout the day to make their lows at the time of writing. The front month NBP contract is off circa a penny from the open at 45.25p while the benchmark Winter’15 contract is off 0.6p at 50.61. There is an obvious technical floor for the Winter’15 contract between 50.5 and 50.60 since the start of the month – any close below this narrow zone would be significantly bearish.
BBL flows from Holland have remained at zero throughout the day while Langeled flows from Norway are in line with flows over the last 3 days at 17 MCM but one might typically expect closer to 25 MCM during the Summer. UK North Sea flows remain steady while South Hook LNG flows continue to ramp up from the start of month levels to 24 MCM today with 2 further cargoes on the horizon in the coming week.
Oil continues its uptrend since mid-January with the May Brent contract triggering further technical buying as it broke through the $60 level before expiry yesterday evening with further front month upside coming from June’s contango to the previous month. Brent is currently at $62.70, yesterday’s positive Chinese oil consumption figures providing support. Today has been quiet news wise for oil.”