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UK GAS: Same-day gas price falls as Norwegian flows resume

Increase font size  Decrease font size Date:2012-11-26   Views:381
The within-day gas contract fell Wednesday morning on the UK's NBP gas trading hub in the wake of flows resuming from Norway's Troll gas field, while other contracts traded in a tight range.

Gas for same-day delivery was valued at 65.20 pence/therm at 1200 GMT, down by 0.85 p/th from Tuesday's close.

Prices rose sharply Tuesday afternoon following an unplanned outage which was announced by the system operator, Gassco, of six to eight hours of downtime at the Norwegian Troll gas field.

"I think it worried the market unduly and the price has just come down from that," a source at an investment bank said.

Forecast demand by National Grid at 1200 GMT Wednesday was pegged at 234 million cubic meters, 32 million cu m below the norm as temperatures exceeded averages, lowering the need for gas-fired heating.

The system was operating slightly short of supply, by 3 million cu m, National Grid said.

Weather forecaster CustomWeather showed temperatures above norms in cities such as Manchester and Glasgow as above norms by 3 degrees Celsius.

The day-ahead price was relatively unchanged from the previous session, trading just 0.05 p/th higher at 65.20 p/th.

December gas moved 0.15 p/th higher to 66.40 p/th.

Later dated contracts were also rangebound despite firmer oil prices.

Crude futures remained higher in midday European trading, holding earlier gains with the markets seeing support from a softer dollar ahead of US crude inventory data.

At 1220 GMT, December ICE Brent traded 31 cents higher at $108.57/barrel.

"It's not enough to bother the market," the source said. "Gas has been higher than oil lately as it is."

The Q1 13 gas contract edged 0.05 p/th lower to 66.55 p/th and Summer and Winter 13 contracts fell by 0.15 p/th to 62.15 and 70.20 p/th, respectively.

Summer 14 was valued at 62.70 p/th, down by 0.20 p/th.




 
 
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