LONDON: British wholesale gas prices fell on Tuesday morning as expectations of warmer temperatures curbed demand.
* The within-day gas price fell 0.65 pence to 36.85 p/therm by 0751 GMT.
* The day-ahead gas price was down 0.30 pence at 36.60 pence per therm.
* Traders said prices fell on warmer weather forecasts combined with high imports of liquefied natural (LNG) gas expected over the next few days.
* Average temperatures in Britain are forecast at 8.7 degrees on Tuesday, some 1.4 degrees higher than previously forecast and are seen rising significantly by the weekend, Eikon Refinitiv data showed.
* "As weather turns substantially milder over the next few days we expect temperatures to rise well above seasonal normal by Sunday before they drop again early next week," Refinitiv analysts said.
* Five LNG tankers are expected to arrive in Britain in the next seven days.
* An outage at Norway's Aasta Hansteen gas field has curbed exports by around 23 million cubic metres for the past few days, but traders said flows are expected to ramp up, adding further pressure to prices.
* Operator Gassco said that by Wednesday the impact of the outage would be cut to 11.6 mcm/day.
* Prices also fell further out on the curve.
* The May contract was down 0.43 p at 35.42 p/therm.
* The winter 2019 contract was down 0.25 p at 56.75 p/therm.
* The day-ahead gas price at the Dutch TTF hub was down 0.25 euro at 14.75 euros per megawatt hour.
* The benchmark Dec-19 EU carbon contract was up 0.22 euro at 26.59 euros per tonne.
Comments
Comments are closed for this article.