Prices plunge on strong oversupply

02 Sep, 2019

* Within-day gas price down 6.50 pence at 20.00 pence per therm by 0844 GMT. This is a 25% drop from Friday's close

* Day-ahead price down 2.70 p to 23.00 p/therm, falling by 10.51% from Friday

* UK gas system was oversupplied by 41.3 million cubic metres (mcm), with demand expected at 123.1 mcm and supply at 164.4 mcm, National Grid data showed

* Britain's gas imports from Norway are up by 14 mcm to 42 mcm/day compared to Friday's imports, Norwegian operator Gassco data showed

* LNG send-out from the South Hook terminal are at around 20 mcm on Monday, a 10 mcm rise from Friday, National Grid data showed

* The Al Ghuwairiya tanker delivered a Qatari cargo at the terminal on Sunday, with Qatari tanker the Al Mafyar expected this week

* Wind generation is expected to be healthy as well, with wind farms operating at 9.1 gigawatts of 12.1 GW available capacity on Monday, Elexon data showed

* On Tuesday, wind generation is predicted to slip to 8.7 GW

* Gas-for-power demand is down by 12 mcm on Monday from previous expectations and is seen down by 8 mcm on Tuesday, Refinitiv data showed

* Moreover, Britain's exports to the continent via the Interconnector UK pipeline are expected to be 10 mcm lower than on Friday, adding further pressure on spot prices

* There was a considerable drop on curve contracts as well, with month-ahead rolling to October

* The UK October contract was down 2.10p at 30.90p/therm

* Day-ahead price on the Dutch TTF hub fell by 0.35 euro per megawatt hour (MWh).

* The TTF October gas price at the Dutch TTF hub  was down 0.78 euro at 12.00 euros/MWh

* The benchmark Dec-19 EU carbon contract was down 0.43 euro at 25.89 euros per tonne

Copyright Reuters, 2019

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