Spot prices steady as supply and demand near balanced
LONDON – British gas prices for prompt delivery were steady on Friday in a near-balanced system as stable supplies from Norway helped meet demand.
Gas for next day delivery fell 0.2 pence to 30.00 p/therm by 0842 GMT. Britain’s gas system was oversupplied by around 3 million cubic metres (mcm), with demand forecast at around 317 mcm/day while flows are at around 320 mcm/day, National Grid data showed.
The Met Office forecast temperatures reaching highs of 8 degrees Celsius on Friday, near seasonal norms. Flows from Norway’s Langeled pipeline were around at 61 mcm/day, in line with the previous day.
“We still expect to see strong Langeled flows in March but there could be some downwards correction as Langeled flows in March normally somewhat below flows in February,” Thomson Reuters analysts said. “Our base scenario for beginning of March is 58 mcm/d.”
Further along the UK gas curve, the Summer 2016 contract rose 0.35 pence to 28.10 p/therm, supported by rising oil prices.
Crude extended gains on Friday, having jumped around 3 percent the previous session, after Venezuela reaffirmed a mid-March meeting of oil producers including Saudi Arabia, Russia and Qatar, to stabilise prices.
In the Netherlands, the day-ahead gas price at the TTF hub was 0.14 euro higher at 12.07 euros per megawatt-hour, also due to increased consumption. In the European carbon market, front-year EU allowances were up by 0.1 euro at 5.18 euros a tonne. -Reuters