Gas prices reduce as supply fears ease
Gas prices continued to ease on Wednesday as European gas hubs continued to shake off Norwegian supply fears.
The bears maintained control yesterday with the Winter 24 front-season contract managing to hold below the 100p/therm psychological level that has been pivoted cautiously over the past few weeks.
Further updates from Norway’s Gassco likely helped to reinforce near-term supply confidence, a REMIT notification was published by the offshore operator during afternoon trade indicating that flows via the Nyhamna processing facility will rise from 0 to 35mcm/d by tomorrow morning (Friday 7th) paving the way for increased flows into Great Britain via the Langeled pipeline.
It wasn’t all plain sailing however with lackluster LNG supply continues to leave the UK especially vulnerable to supply shocks such as we have seen this week. According to data collated from National Gas, send out flows (within session) averaged just 9.6mcm on Wednesday, down from 32.3mcm for the same date last year.
At the same time, shipping signals suggest that only one vessel the ‘Lalla Fatma N’Soumer’ is expected at arrive at Britain’s Isle of Grain terminal over the next 7 day outlook.
Unusually high temperatures across Southeast Asia and subsequently high gas-fired power demand (for cooling) are continuing to divert cargoes away from Europe.
This morning, prices have opened slightly higher when compared to yesterdays close, with the July 24 front-month contract currently being offered circa 0.03p/kWh above its previous settlement at time of writing.
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