UK GAS-Prices decline on oversupply, reduced demand

UK GAS-Prices decline on oversupply, reduced demand

British wholesale gas prices declined on Tuesday morning due to an oversupplied system and reduced demand. * Within-day gas price down by 0.50 pence at 79.00 pence per therm at 0809 GMT * Day-ahead gas inched down by 0.25 pence to 78.75 p/therm * The system is oversupplied, even though flows through the Langeled pipeline from Norway are reduced to 24 million cubic metres (mcm) per day as gas is re-routed to continental Europe * Flows are forecast at around 184 mcm/day and demand at 174 mcm, leaving the system oversupplied by 10 mcm, National Grid data shows * Demand for gas for heating is also expected to be lower than previously due to a slight increase in temperatures, traders said * Demand is around 14 mcm below the seasonal norm * However, withdrawals from storage are expected to be strong on Tuesday * “It’s possible that a meaningful drop in prices will take place only if and when the market really believes that liquefied natural gas (LNG) volumes will remain in Europe now that the arbitrage to Asia is lower,” said Thomson Reuters gas analyst Dimitrios Saratzis * One LNG tanker is scheduled to arrive in Britain this month * Further along the curve the winter 2018 contract was down 0.30 p at 82.60 p/therm, but the Q4 2019 price was 5.35 p higher at 71.75 p/therm * In the Dutch gas market, the day-ahead price at the TTF hub was 0.22 euro higher at 29.70 p/therm

https://www.hellenicshippingnews.com/uk-gas-prices-decline-on-oversupply-reduced-demand/

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