Prices fall due to oversupply

12 Apr, 2019

* Day-ahead gas price down 1.15 pence at 39.25 pence per therm at 0817 GMT.

* Gas for immediate delivery down 1.75 pence at 39.00 p/therm.

* Demand is forecast at 284 million cubic metres (mcm) and flows at nearly 298 mcm/day, leaving the system oversupplied by 14 mcm, National Grid data shows.

* Flows from Norway to Britain are 8 mcm higher from the previous day at 86 mcm/day.

* Temperatures are expected to fall to below the seasonal norm at the weekend but return to normal levels by the beginning of next week.

* "Our outlook for the later part of next week is slightly warmer compared to the previous forecast," Refinitiv gas analysts said.

* Wind power generation is expected to rise over the weekend and be above normal levels next week, which should lower demand from gas-to-power plants.

* Earlier this week prices rose due to a European carbon permit price rally.

* May gas contract down 0.85 p at 38.75 p/therm.

* Day-ahead gas price at the Dutch TTF hub up by 0.12 euro at 16.20 euros per megawatt hour.

* Benchmark Dec-19 EU carbon contract declined by 0.05 euro to 27.27 euros a tonne, a fresh 11-year high.

Copyright Reuters, 2019
 

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