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UK GAS: Prompt falls as imports rise to meet heightened demand

Increase font size  Decrease font size Date:2013-02-27   Views:614
Prompt prices eased Tuesday morning on the UK's NBP gas trading hub as an uptick in demand was met by stronger imports.

At 1200 GMT, the within-day gas contract was valued at 67.15 pence/therm, down by 0.70 p/th from Monday's close, and the day-ahead contract fell by 0.70 p/th to 67.25 p/th.

Nominations for today show colder temperatures have pushed residential demand to an 11-day high of 250 million cubic meters, Platts' unit Bentek Energy said.

"Stronger NBP prices and a wider spread to the Zee market have helped drive higher supply, notably a 16 million cu m increase in Norwegian imports and a 25% increase in flows from Belgium, which are at a 13-day high of 21 million cu m," Bentek said.

At 1200 GMT, National Grid had forecast demand for the day pegged at 321 million cu m with the system 4 million cu m long.

Temperatures in London fell below norms Tuesday by 1 degree C and are expected to progressively fall throughout the week to 4 C below at the weekend, CustomWeather showed.

Gas for March delivery edged 0.10 p/th lower to 66.50 p/th.

Further along the curve contracts recovered some lost ground throughout the morning following a rally in oil prices.

Crude futures halted Monday's more than $1/barrel selloff that was largely attributed to a price correction and profit-taking following Friday's multi-month highs as easing eurozone concerns helped lift markets.

Winter 13 gas fell as low as 70.35 p/th during the morning but climbed back to parity with Monday's close by 1200 GMT at 70.80 p/th.

Summer 13 was down by 0.15 p/th at 63.70 p/th and Q2 12 lost 0.10 p/th at 63.70 p/th.


 
 
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