Trade Resources Industry Views Prompt Prices Eased Tuesday Morning on The UK's NBP Gas Trading Hub

Prompt Prices Eased Tuesday Morning on The UK's NBP Gas Trading Hub

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.

Source: http://news.chemnet.com/Chemical-News/detail-1813368.html
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UK Gas: Prompt Falls as Imports Rise to Meet Heightened Demand
Topics: Chemicals