005-SPINTAX-Uk-gas-prompt-comfortable-but-forward-curvePosted by Torres Perez on January 18th, 2021 UK GAS: Prompt comfy, yet ahead curve remains strong The UK gas market was pleasantly supplied on the punctual Tuesday, however prices stayed very strong on the forward contour, market resources said. For example, Winter season 11 struck a high of 76 pence/therm in very early trading, up 0.70 p/th from Monday's close, and according to one investor a brand-new record, although it dropped back to 74.75 p/th by lunchtime UK time. On the prompt, within-day went to 58 p/th at noontime as well as day-ahead at 57.85 p/th, more or less in line with the previous day's closing cost for day-ahead. The market looked comfy, with system operator National Grid forecasting daily materials of 316 million cubic meters versus need of 315 million cu m. Demand was a touch listed below seasonal regular of 321 million cu m. click here remained to move right into the UK network at high prices, despite expectations in current weeks that LNG tankers might be drawn away to Japan to change shed nuclear power result. Investors now assume that any kind of diversions, if they come, will be later in the year. Grain, Dragon as well as South Hook LNG in the UK were moving a combined rate of around 108 million cu m/day at noontime, implying that LNG terminals were supplying a third of the UK's gas. One UK trader claimed the timely was looking rather bearish for summertime, with comfortable supplies, and the only possible concern being LNG diversions if they happened later on in the year. Nevertheless, the timely would battle to drop much from present degrees while the forward curve was still so strong, the trader stated, and that would certainly not move while oil was so high. Oil rates sustain gas costs via lasting gas sales agreements index-linked to average oil prices, especially common in Continental Europe. "Gas can be listed below the oil price, however not 30-40 p/th listed below," stated the trader. One more trader agreed that it would be tough for the prompt to fall too much while oil was so solid. Front-month Brent crude is around 0/barrel on the back of continuing stress in North Africa as well as the Middle East. Upcoming LNG shipments to the UK consist of the Methane Princess to Dragon April 6, the LNG Ondo from Nigeria to Dragon April 10, as well as four tankers from Qatar to South Hook. Those are the Al Ghariya April 5, the Al Mayeda April 7, the Al Kharaitiyat April 9 as well as the Onaiza April 12.Like it? Share it! More by this author |