UK gas prices down sharply on milder weather

London (Platts)--20Mar2006

UK gas prices at the National Balancing Point dropped sharply Monday
morning as warm weather and a well supplied system over the weekend saw spot
gas sold as low as 37.5 p/therm in after hours trading. "No-one is ready to
short so prices come off much quicker," one trader said.
Day-ahead crashed from Friday's close of 135 p/th to 85 p/th at noon
Monday, having touched 80 p/th in the morning. Within-day gas, meanwhile
ralled back up to 75 p/th, which compares with Friday's close of 145 p/th.
Other prompt prices going forward dropped below 90 p/th. Next week was seen
going through in a 85 p/th to 90 p/th range, with the weather unsettled.
"It's still touch and go," one trader said, "although there are plenty of
LNG cargoes coming in, there are plenty of players sitting on their domestic
storage ready to sell it into the weather." The price for weekend delivery was
85 p/th while April trimmed 3.4p to 53.75 p/th.

 

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