UK prompt gas prices were relatively stable Tuesday as the supply system remained unchanged on the day despite the forecast return of colder weather in the next few days, traders said.
Some traders said that with the cold drawing nearer they were surprised prices softened throughout Monday's session given the tight supply system and bullish fundamentals.
UK gas for immediate delivery was up 0.30 pence a therm by midday London time Tuesday at 61.20 p/th, while the day-ahead contract rose 0.60 p/th to 61.35 p/th.
"Forecast demand has remained below 400 million cubic meters but nevertheless, this is around 36 million cubic meters higher than what is expected for this time of year," one trader said.
"The gas supply system remains unchanged from yesterday, with healthy Norwegian flows via Langeled and St. Fergus Total supporting supply," the trader added.
CustomWeather forecast temperatures in London to remain 4 degrees Celsius below the seasonal average of 3-8 degrees Celsius for the next two days, but dropping 7 degrees Celsius below normal Friday and the weekend.
National Grid data showed that after opening around 4 million cu m/d short the system moved to 6 million cu m/d short, with supply at 392 million cu m/d against demand of 398 million cu m/d -- 10% higher than the seasonal average.
The data showed there was a slight blip in long range storage flows from Rough which were being withdrawn at an unchanged rate of 45 million cu m/d, although this had little impact on the market and was short-lived with the main support coming from pipeline flows elsewhere.
Natural gas flows through the Langeled pipeline from Norway were at 70 million cu m/d, St. Fergus Total flows were at 40 million cu m/d, while LNG flows contributed 60 million cu m/d to the system including 35 million cu m/d flowing from South Hook and 20 million cu m/d from Isle of Grain.
A number of LNG deliveries from Qatar are expected at the South Hook LNG terminal in the near future according to local port data, which include the Duhail on Thursday, the Al Samrita on December 18 and the Umm Al Amad on December 20.
Further forward, the front-month rose 0.45 p/th to 57.80 p/th. Traders said that following news of further LNG cargoes which weighed on first quarter 2011 prices Monday by potentially offsetting any depletion in storage stocks, there was some price recovery Tuesday morning.
Gas for delivery in the first quarter next year was trading around 57.40 p/th by lunchtime, up 0.40 p/th on the day, while sources said there was some volatility in prices at open on the far end as Summer 2011 bounced between 53 p/th and 52.50 p/th, changing hands flat on Monday's close by midday at 52.25 p/th.
Some traders said that with the cold drawing nearer they were surprised prices softened throughout Monday's session given the tight supply system and bullish fundamentals.
UK gas for immediate delivery was up 0.30 pence a therm by midday London time Tuesday at 61.20 p/th, while the day-ahead contract rose 0.60 p/th to 61.35 p/th.
"Forecast demand has remained below 400 million cubic meters but nevertheless, this is around 36 million cubic meters higher than what is expected for this time of year," one trader said.
"The gas supply system remains unchanged from yesterday, with healthy Norwegian flows via Langeled and St. Fergus Total supporting supply," the trader added.
CustomWeather forecast temperatures in London to remain 4 degrees Celsius below the seasonal average of 3-8 degrees Celsius for the next two days, but dropping 7 degrees Celsius below normal Friday and the weekend.
National Grid data showed that after opening around 4 million cu m/d short the system moved to 6 million cu m/d short, with supply at 392 million cu m/d against demand of 398 million cu m/d -- 10% higher than the seasonal average.
The data showed there was a slight blip in long range storage flows from Rough which were being withdrawn at an unchanged rate of 45 million cu m/d, although this had little impact on the market and was short-lived with the main support coming from pipeline flows elsewhere.
Natural gas flows through the Langeled pipeline from Norway were at 70 million cu m/d, St. Fergus Total flows were at 40 million cu m/d, while LNG flows contributed 60 million cu m/d to the system including 35 million cu m/d flowing from South Hook and 20 million cu m/d from Isle of Grain.
A number of LNG deliveries from Qatar are expected at the South Hook LNG terminal in the near future according to local port data, which include the Duhail on Thursday, the Al Samrita on December 18 and the Umm Al Amad on December 20.
Further forward, the front-month rose 0.45 p/th to 57.80 p/th. Traders said that following news of further LNG cargoes which weighed on first quarter 2011 prices Monday by potentially offsetting any depletion in storage stocks, there was some price recovery Tuesday morning.
Gas for delivery in the first quarter next year was trading around 57.40 p/th by lunchtime, up 0.40 p/th on the day, while sources said there was some volatility in prices at open on the far end as Summer 2011 bounced between 53 p/th and 52.50 p/th, changing hands flat on Monday's close by midday at 52.25 p/th.
