Archived Summaries

Thursday 16th August 2012
Market Close

This morning The UK gas system has opened long again this morning with forecast demand of 173 MCM lagging deliveries of 184 MCM. Supplies from Norway are running at 30 MCM with Langeled and the Vesterled pipeline each contributing 15 MCM into the system. LNG is providing the biggest share of the supply mix with Milford Haven sending out 45 MCM. This healthy supply position is easing the pressure on the prompt and nudging the within day and day ahead price lower in early trading, with prices down from Wednesdays' close by 0.25p and 1.20p respectively. Following the increase in the price of front month Brent yesterday which closed up by $2.22 the price is trading marginally higher this morning. Threats of further disruption to North sea supplies next month and potential reduction in supplies arising from storm activity in the Gulf of Mexico are helping to keep prices high. Brent is up by just $0.20 and the price of Nymex is unchanged. After the decline in gas futures on Wednesday averaging 0.92p prices have opened this morning largely unchanged. The only movement of note this morning is that the November 2012 month is trading higher by 0.30p with the balance of the futures traded virtually unchanged on last nights' close.