UK gas: Day-ahead falls to near 10-month low on oversupply

Gas for day-ahead delivery on the UK’s NBP trading hub fell to a near 10-month low on a large oversupply with demand falling overnight.

According to Platts, the within-day contract was valued at 55.00 pence/therm. The day-ahead price fell by 0.60 p/th to 57.65 p/th — a price the contract has not closed a day’s trading below since August 31 last year.

The system opened long by 43 million cubic meters with demand down from 197 million cu m on 162 million cu m, a market analyst said.

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“Nominations show the decline in demand has been significant, notably with nominations for storage injections declining by 20 million cu m. Power burn has also come down 10 million cu m due to the ramping up of cheaper coal-fired generation after completion of maintenance,” Platts’ unit Bentek Energy said.

“It is likely injections will increase and supply from Norway will subside in order to balance the market.”

BST, National Grid had forecast demand revised at 175 million cu m with the system 35 million cu m long.