LONDON: Prompt natural gas prices fell on Monday as supply outpaced demand and expectations of liquified natural gas (LNG) deliveries weighed on the market.
The within-day contract traded at 49.65 pence per therm at 0845 GMT, down 2.2 pence since its last settlement. Prices for delivery on Tuesday were down 1.95 pence at 49.95 pence per therm.
With supply flows at about 307.1 million cubic metres (mcm) per day on Monday and demand expected to be about 280 mcm, the system was 27.1 mcm oversupplied, National Grid data showed.
Expected shipments of LNG also weighed on prices traders said.
The Zarga, Al Oraiq and Rasheeda tankers are due to arrive in Britain this week from Qatar, while the Methane Jane Elizabeth tanker is due to arrive from Trinidad, according to ship-tracking data on Reuters Eikon.
Meanwhile analysts at Thomson Reuters Point Carbon said Ukraine's $15 million payment for Russian gas supplies on Friday had removed some of the risk premium from near term contracts.,
"We remain positive that an agreement will be made, putting downward pressure on prices following the emergence of a small risk premium last week," the analysts said in a research note on Monday.
Europe gets around a third of its gas from Russia, with roughly half being pumped via Ukraine.
Further along the curve, gas for Summer 15 delivery was 0.70 pence lower at 46.20 pence per therm.
In the Netherlands, the day-ahead gas price at the TTF hub was 0.1 euros lower at 22.20 euros per megawatt-hour (MWh).
In Europe's carbon market, benchmark EU Allowances (EUA) edged down 0.11 euros to 7.04 euros per tonne.
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