London — British prompt wholesale gas prices rose on Wednesday morning as low imports from Norway left the market slightly undersupplied, while the curve dipped on weaker prices across the energy complex.
* The day-ahead contract was up 1.90 pence at 26.50 pence per therm by 0846 GMT.
* Gas for weekend delivery was 1.75 p higher at 26.00 p/therm, while working days next week was up 1.75 p at 33.00 p/therm.
* “Related fuels are all softer but day-ahead (gas) is up on an undersupplied system and reduced Langeled (flows). The underlying trend is still bearish,” said Wayne Bryan, senior European energy & commodity analyst at Alfa Energy.
* Imports from Norway through the Langeled pipeline were around 38 million cubic metres (mcm), down from around 46 mcm the previous day.
* Analysts at Refinitiv said more supply would need to be drawn from Britain’s gas storage sites to offset the lower imports.
* “Storages are nominated at net withdraw of 3 mcm/day this morning and it may need to ramp up during the day,” the analysts said in a daily research note.
* Britain’s gas system was undersupplied by 2.2 mcm with demand forecast at 231.4 mcm and flows at 229.2 mcm/day, National Grid data showed.
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* Further out on the curve, prices were down, dragged lower by a weaker energy complex.
* Oil prices dipped on Wednesday as U.S. industry data showed a bigger-than-expected build in crude stocks.
* November gas contract down 0.42 p at 40.25 p/therm.
* Day-ahead gas price at the Dutch TTF hub up 0.25 euro at 10.57 euros per megawatt hour.
* Benchmark Dec-19 EU carbon contract down 0.51 euro at 25.15 euros per tonne.
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– Reuters
