Norwegian natural gas has once again whipsawed prices in the UK market. After maintenance on gas facilities in Norway cut supply last week, pushing natural gas prices to a six-month high, an end to most of the work sent them to a two-month low. Same-day gas in the U.K. fell as much as 11 percent Monday, its biggest decline since April 7, according to broker data compiled by Bloomberg.
“We are seeing a classic case of mean reversion of the products pricing following the cessation of supply-side issues created by heavy Norwegian maintenance,” said Nick Campbell, an energy risk manager at Inspired Energy Solutions. An end to outages has “helped turn the sentiment bearish.”