Thursday, October 28

Prices recoup some losses on higher demand expectations


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LONDON — British and Dutch wholesale gas prices rose on Friday trade, partially recouping sharp losses in the previous session, on expectations of higher demand for heating and supply concerns.

* British gas for Q1/2022 delivery rose 17.9 pence to 2.7 pounds per therm by 0828 GMT.

* The Dutch gas price for December delivery jumped 4.14 euros to 103.85 euros per megawatt hour at 0828 GMT.

* The November gas price at the Dutch TTF hub dipped by 0.50 euro to 101.50, having risen to 105.00 euros/MWh in earlier trade.

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* European gas prices are now around a third off peaks hit earlier this week, though they still are up some 300% this year.

* “The signal from weather inputs is moderately bullish since wind output remains below normal and temperatures are expected to dip further, supporting thermal power generation and heating demand in Europe,” Refinitiv analysts said.

* “Gas heating demand is expected to ramp up sharply and weather will be the major driver of gas fundamentals,” they added.

* The UK system was 10 million cubic meters (mcm) over-supplied on Friday, National Grid data showed.

* In the UK, peak wind power output will drop from 5.1 GW on Friday to 3.8 GW on Saturday, Elexon data showed.

* Gazprom’s China-focused Amur gas processing plant in Russia’s Far East has halted operations after a fire early on Friday, a spokesman for the plant told Reuters. The broader implications were not immediately clear.

* The benchmark Dec-21 EU carbon contract was down 0.49 euros at 59.88 euros per tonne. (Reporting by Marwa Rashad; Editing by Nina Chestney)



financialpost.com

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