Archived Summaries

Wednesday 01 August 2012
Market Close
  The UK gas system opened with forecast supply running at 181 MCM and demand at 168 MCM allowing prompt gas prices to ease.  While demand fell off slightly during the day, deliveries also shrank but the system maintained a surplus throughout and within day gas fell by 0.40p.  The day ahead contract recorded the biggest loss on the prompt, shedding 1.15p as the supply outlook remained strong.  The main source of increased supply optimism was LNG with send-out from Milford Haven of over 50 MCM helping to offset the reduced contribution from the Langeled pipeline which contributed just 20 MCM to the supply mix yesterday with total supplies from Norway at just 38 MCM on the day.  On the futures market, the strong supply situation helped the front month and October contracts to move marginally lower with expectations of reduced storage injection demand and increased LNG availability over the next 2 months.  Further forward however, increased oil prices drove UK gas prices higher as Brent settled a dollar higher at $105.96, having seen an intra-day high of $106.92.