London (Platts)--9Jan2013/850 am EST/1350 GMT
Prompt prices hit near month highs Wednesday on the UK's NBP gas trading hub with forecasts of colder temperatures the key driver, market sources said. The within-day contract was valued at 67.60 pence/therm at 1200 GMT, up 3.30 p/th from where it closed Tuesday, and day-ahead gas rose 2.20 p/th to 67.80 p/th. The values were the highest since December 12. "Demand has risen this morning with the drop in temperatures," a market analyst said. "Storage withdrawals from Easington Rough are at full capacity of 43 million cubic meters/day, and are set to continue for the short-term as temperatures are due to fall below average by the end of the week." Temperatures in London and Glasgow were both above norms by 1 degree Celsius Wednesday, CustomWeather data showed, but are expected to be in line with norms Thursday and London is forecast to fall to 6 C below at the weekend and fall further into the new week. Article continues below...Request a free trial of: European Gas DailyEuropean Gas Daily is a flagship Platts publication that delivers crucial competitive intelligence across the entire European gas marketplace. It keeps you ahead of critical price changes and their effects on the industry -- to help you make informed market decisions.
Prompt prices hit near month highs Wednesday on the UK's NBP gas trading hub with forecasts of colder temperatures the key driver, market sources said. The within-day contract was valued at 67.60 pence/therm at 1200 GMT, up 3.30 p/th from where it closed Tuesday, and day-ahead gas rose 2.20 p/th to 67.80 p/th. The values were the highest since December 12. "Demand has risen this morning with the drop in temperatures," a market analyst said. "Storage withdrawals from Easington Rough are at full capacity of 43 million cubic meters/day, and are set to continue for the short-term as temperatures are due to fall below average by the end of the week." Temperatures in London and Glasgow were both above norms by 1 degree Celsius Wednesday, CustomWeather data showed, but are expected to be in line with norms Thursday and London is forecast to fall to 6 C below at the weekend and fall further into the new week.
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European Gas Daily is a flagship Platts publication that delivers crucial competitive intelligence across the entire European gas marketplace. It keeps you ahead of critical price changes and their effects on the industry -- to help you make informed market decisions.
At midday, National Grid had forecast demand pegged at 279 million cu m, and the system was operating 7 million cu m short. "Norwegian imports are again lower, and UK production via the Bacton terminal is slightly down," the analyst said. The Norwegian Langeled pipeline was operating operating at a rate of 51 million cu m/d, down from recent full capacity rates of 70 million cu m/d. The front month contract also felt the temperature-driven bullish push, posting a 0.55 p/th gain at 68.25 p/th. The Q2 13 contract rose by 0.10 p/th at 62.55 p/th and seasonal contracts were similarly rangebound with oil prices providing little direction. ICE February Brent was down 10 cents day-on-day at $111.84/b. The Summer 13 gas contract gained 0.15 p/th at 62.55 p/th and Winter 13 edged 0.05 p/th higher at 70.60 p/th. Summer 14 rose by 0.20 p/th at 63.80 p/th.
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