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UK GAS-Prices hit fresh over 2-year highs on LNG prices, colder temperatures

Tue, 12th Jan 2021 09:56

Jan 12 (Reuters) - British wholesale gas prices soared to
fresh more than two-year highs on Tuesday as colder weather
stoked demand and rocketing Asian liquefied natural gas (LNG)
prices curbed supply to Europe.

* The within-day contract was up 5.00 pence at
72.00
pence per therm by 0937 GMT, its highest level since October
2018.

* The day-ahead contract was up 3.80 p at 71.00
p/therm.

* Traders said temperatures were forecast to go lower and
soaring
prices of LNG had lifted gas prices across Europe.

* Asian LNG prices have rocketed over the last few weeks as
cold
weather grips the region, hitting record highs.

* As a result, fewer tankers are arriving in Europe.

* The Boris Davydov LNG tanker is docked at Britain’s Isle
of
Grain terminal, but no other LNG tankers are scheduled to arrive
over the next few weeks.

* Meanwhile colder temperatures in Europe are also pushing
up
demand.

* "Sudden stratospheric warming is bringing cold arctic air
flows
into Europe as well, which has led to a surge in power demand,”
analysts at Barclays said in a research note

* “This lowered the previously robust storage level to a
seasonal
level and sent the European natural gas prices to a two-year
high,” Barclays analysts said.

* Average temperatures in Britain were forecast at 5.3
degrees
Celsius for Tuesday, falling to 3.5 C on Wednesday Refintiv
Eikon data showed.

* The forecasts were 0.7C and 2C respectively lower than
previous
expectations.

* The February contract was up 5.25 p at 72.50
p/therm, the highest price for the font month contract since
November 2018.

* The day-ahead gas price at the Dutch TTF hub
was up
1.65 euro at 23.95 per megawatt hour.
(Reporting By Susanna Twidale; editing by Nina Chestney)

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