Market Update 28/11/23

Market Update 28/11/23

The recent trading session witnessed a sustained bearish momentum in both the spot European and UK natural gas hubs. Despite weather conditions presenting a mixed picture, with UK temperatures being modestly adjusted upwards from previous forecasts, the extended operation of the Kollesnes processing plant until November 29 provided some support to prices by the session's close. However, the market response to these factors was overshadowed by a notable selloff, as participants reacted to the revised weather outlook.

The recent trading session witnessed a sustained bearish momentum in both the spot European and UK natural gas hubs. Despite weather conditions presenting a mixed picture, with UK temperatures being modestly adjusted upwards from previous forecasts, the extended operation of the Kollesnes processing plant until November 29 provided some support to prices by the session's close. However, the market response to these factors was overshadowed by a notable selloff, as participants reacted to the revised weather outlook.

The recent trading session witnessed a sustained bearish momentum in both the spot European and UK natural gas hubs. Despite weather conditions presenting a mixed picture, with UK temperatures being modestly adjusted upwards from previous forecasts, the extended operation of the Kollesnes processing plant until November 29 provided some support to prices by the session's close. However, the market response to these factors was overshadowed by a notable selloff, as participants reacted to the revised weather outlook.

The recent trading session witnessed a sustained bearish momentum in both the spot European and UK natural gas hubs. Despite weather conditions presenting a mixed picture, with UK temperatures being modestly adjusted upwards from previous forecasts, the extended operation of the Kollesnes processing plant until November 29 provided some support to prices by the session's close. However, the market response to these factors was overshadowed by a notable selloff, as participants reacted to the revised weather outlook.

The erosion of risk premiums on the curve was a notable feature, driven by the prevalence of bearish fundamentals. This includes a robust storage situation across the continent, marked by ample reserves. Additionally, the market exhibited overall health with scheduled Liquified Natural Gas (LNG) deliveries and Norwegian flows playing a contributory role in suppressing risk premiums.

The erosion of risk premiums on the curve was a notable feature, driven by the prevalence of bearish fundamentals. This includes a robust storage situation across the continent, marked by ample reserves. Additionally, the market exhibited overall health with scheduled Liquified Natural Gas (LNG) deliveries and Norwegian flows playing a contributory role in suppressing risk premiums.

The erosion of risk premiums on the curve was a notable feature, driven by the prevalence of bearish fundamentals. This includes a robust storage situation across the continent, marked by ample reserves. Additionally, the market exhibited overall health with scheduled Liquified Natural Gas (LNG) deliveries and Norwegian flows playing a contributory role in suppressing risk premiums.

Traders pointed to the interdependence of power prices, which mirrored the losses in the gas market. This synchronicity can be attributed to the shared influences of weather forecasts and other driving factors affecting both gas and power prices. The French nuclear output, rising to 43 GW just before the anticipated cold snap, added another layer to the intricate web of market dynamics.

Traders pointed to the interdependence of power prices, which mirrored the losses in the gas market. This synchronicity can be attributed to the shared influences of weather forecasts and other driving factors affecting both gas and power prices. The French nuclear output, rising to 43 GW just before the anticipated cold snap, added another layer to the intricate web of market dynamics.

Traders pointed to the interdependence of power prices, which mirrored the losses in the gas market. This synchronicity can be attributed to the shared influences of weather forecasts and other driving factors affecting both gas and power prices. The French nuclear output, rising to 43 GW just before the anticipated cold snap, added another layer to the intricate web of market dynamics.

In conclusion, the persistent bearish trends in the European and UK natural gas markets reflect a confluence of factors, from revised weather forecasts and extended processing plant operations to robust storage conditions and healthy supply indicators. The interconnected nature of gas and power prices further underscores the complexity of market dynamics. As participants navigate this landscape, the ability to interpret and respond to multifaceted influences becomes paramount, reinforcing the importance of vigilance in decision-making within the evolving energy market.

In conclusion, the persistent bearish trends in the European and UK natural gas markets reflect a confluence of factors, from revised weather forecasts and extended processing plant operations to robust storage conditions and healthy supply indicators. The interconnected nature of gas and power prices further underscores the complexity of market dynamics. As participants navigate this landscape, the ability to interpret and respond to multifaceted influences becomes paramount, reinforcing the importance of vigilance in decision-making within the evolving energy market.

In conclusion, the persistent bearish trends in the European and UK natural gas markets reflect a confluence of factors, from revised weather forecasts and extended processing plant operations to robust storage conditions and healthy supply indicators. The interconnected nature of gas and power prices further underscores the complexity of market dynamics. As participants navigate this landscape, the ability to interpret and respond to multifaceted influences becomes paramount, reinforcing the importance of vigilance in decision-making within the evolving energy market.

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