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UK prompt gas prices drop on warm weather
Mon, 28th May 2012 09:32
By Henning Gloystein
OSLO, May 28 (Reuters) - British prompt gas prices weakened on Mond
Gas for next-day delivery was trading at 52.95 pence per therm at 0845 BST (0745 GMT), down 0.45 pence from Friday, while gas for within-day deliver was trading at 52.75 pence, also slightly lower than late last week.
Analysts said that the price outlook for day-ahead gas contracts was flat as low demand and low gas flows would offset one another.
'Consumption is forecast down, providing a bearish price signal while maintenance at Bacton Shell is bullish for the day-ahead gas prices,' analysts at Point Carbon said, adding that they expected prices on Tuesday to be around 52.70 pence per therm.
Gas demand in Britain remained weak, projected at 181.1 million cubic metres (mcm) for Monday, almost a third below the seasonal norm, data from National Grid showed.
At expected flows or 196.6 mcm, Monday's system looked to be 15.5 mcm oversupplied despite being significantly lower than the seasonal norm of 260.4 mcm.
The reduced flows were a result of low supplies through the Langeled gas pipeline from Norway following a technical error at the Troll gas platform last week.
Some 36 hours of scheduled maintenance at the Bacton Shell gas field started on Monday, reducing flows by another 10 mcm per day.
Weak demand also affected the power market, where the price for next-day baseload (24 hours) delivery fell 65 pence per megawatt-hour (MWh) from Friday to 39.95 pounds per MWh.
WARM WEATHER
The UK's MetOffice said that temperatures in Britain were expected to remain warm for most of this week, although last week's levels would not be reached and showers and thunder storms could occur.
For Tuesday, the MetOffice said it expected a maximum temperature of 23 degrees Celsius.
(Reporting by Henning Gloystein; editing by Jason Neely)
(Henning.Gloystein@thomsonreuters.com)(44 207 542 6659)(Reuters Messaging: henning.gloystein.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
OSLO, May 28 (Reuters) - British prompt gas prices weakened on Mond
ay morning as low demand pulled down the market, and traders said that the outlook remained unchanged as mild weather kept a brake on demand.
Gas for next-day delivery was trading at 52.95 pence per therm at 0845 BST (0745 GMT), down 0.45 pence from Friday, while gas for within-day deliver was trading at 52.75 pence, also slightly lower than late last week.
Analysts said that the price outlook for day-ahead gas contracts was flat as low demand and low gas flows would offset one another.
'Consumption is forecast down, providing a bearish price signal while maintenance at Bacton Shell is bullish for the day-ahead gas prices,' analysts at Point Carbon said, adding that they expected prices on Tuesday to be around 52.70 pence per therm.
Gas demand in Britain remained weak, projected at 181.1 million cubic metres (mcm) for Monday, almost a third below the seasonal norm, data from National Grid showed.
At expected flows or 196.6 mcm, Monday's system looked to be 15.5 mcm oversupplied despite being significantly lower than the seasonal norm of 260.4 mcm.
The reduced flows were a result of low supplies through the Langeled gas pipeline from Norway following a technical error at the Troll gas platform last week.
Some 36 hours of scheduled maintenance at the Bacton Shell gas field started on Monday, reducing flows by another 10 mcm per day.
Weak demand also affected the power market, where the price for next-day baseload (24 hours) delivery fell 65 pence per megawatt-hour (MWh) from Friday to 39.95 pounds per MWh.
WARM WEATHER
The UK's MetOffice said that temperatures in Britain were expected to remain warm for most of this week, although last week's levels would not be reached and showers and thunder storms could occur.
For Tuesday, the MetOffice said it expected a maximum temperature of 23 degrees Celsius.
(Reporting by Henning Gloystein; editing by Jason Neely)
(Henning.Gloystein@thomsonreuters.com)(44 207 542 6659)(Reuters Messaging: henning.gloystein.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
