Archived Summaries

Thursday 09 August 2012
Market Close
Demand on the UK gas system picked up over the course of the day yesterday, peaking at a one week high of 182 CM while deliveries were slow to respond.  Although Norwegian deliveries did increase with Langeled flows moving up to 32 MCM, the increase came to late to restore balance to the system which moved from a surplus of 5 MCM in the morning to a deficit of 5 MCM at the close.  LNG send-out remained steady at 48 MCM from Milford Haven - South Hook and while production at the Isle of Grain did see send-out from the Thames terminal by late afternoon, again it came to late to alter the system balance.  The prompt market reversed early losses as the system tightened, within day gaining 0.25p and day ahead 0.45p while the week ahead was up by 0.55p as further restriction of Norwegian supply is expected with fresh maintenance commencing upstream of the Kollsness processing plant. The front month gained 0.35p mainly on prompt market gains while an increase of over a dollar in crude oil prices on the day saw gas futures gaining across the board.  The front winter contract was up by 0.42p to a 4 week high of 65.47p.