Tuesday, 1 February 2011

UK business gas prices slide again on Norwegian supply surge

Near term wholesale British gas prices fell again as supplies from Norway surged higher on Tuesday, leaving the UK gas system overupplied, while concerns
over the crisis in Egypt supported the far curve, traders said.

Gas prices fell on Monday as Norwegian gas exports to the UK recovered from last week's field maintenance, and prices plunged again early Tuesday as flows from Norway into Scotland and England jumped, cutting reliance on storage and liquefied natural gas (LNG).

Gas for delivery on Tuesday fell to 52.65 pence per therm by 1000 GMT, down about 0.85 pence from close on Monday, while contracts for Wednesday dipped to 52.55 pence and the new front month contract March fell to 52.60 pence ($8.46 per mmbtu).

But contracts from the second quarter of 2011 and beyond firmed, after a rally in crude oil prices. driven by concerns over unrest in Egypt impacting oil supplies. [O/R] "The prompt is off but the curve staying firm," said one UK energy trader. "Egypt is pricing in more beyond the spot."


Take a look at our latest video on how to compare business gas prices now...

No comments:

Post a Comment