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EURO GAS: Continental prompt slightly up, fundamentals unchanged

EURO GAS: Continental prompt slightly up, fundamentals unchanged

Write: Araxie [2011-05-20]
p>Most of the Continental European gas prompt contracts rose slightly midday Tuesday, even though traders felt that market fundamentals were mostly unchanged.


There was a dip in the UK-Belgium Interconnector flows from the UK in to the Continent, where forecast gas flows reached a low of 21.18 million cubic meters.


This may have contributed to the slight rise in prices, sources said.


The Dutch TTF day-ahead contract was 25 euro cent higher than Monday's close, trading Tuesday at Eur17.85/MWh.


The German NetConnect day-ahead contract was heard at Eur18.10/MWh, a 10 euro cent increase from Monday.


The German GASPOOL prompt was only 5 euro cent up from Monday, trading at Eur17.95/MWh.


The only prompt contract that did not rise midday Tuesday was the PEG Nord, which traded at Eur18.05/MWh, a 5 euro cent drop from Monday.


"Everything is more or less unchanged from Monday," a trader said.


A milder weather front seems to be the major factor affecting Continental European gas prompt prices. Tuesday temperatures in the Netherlands will be 2 degrees Celsius higher than the seasonal norm, according to weather service Custom Weather. Temperatures in France and Germany will be 1-2 degrees Celsius higher than seasonal warm.


As the week progresses, temperatures are expected to reach up to 7 degrees above seasonal norms across Europe.


At 1200 London time, the Dutch TTF Cal 11 contract was at Eur19.50/MWh, 5 euro cent above Monday's close.


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