UK GAS-Prices fall mainly due to improved supply outlook

UK wholesale gas prices fell mainly on Tuesday morning as supply and demand were fairly balanced and future supply fears eased with a capacity reservation on the Ukraine-Russia pipeline for August.

The day-ahead contract was down 1.80 pence to 88.00 p / therm at 08:40 GMT.

The UK gas system was near balanced, with demand forecast at 139.4 million cubic meters (mcm) with a flow rate of 136.1 mcm / day, according to data from National Grid.

Russian gas giant Gazprom has reserved an additional 15 million cubic meters per day for the transit of its gas through Ukraine to Europe in August, results of the monthly auctions showed on Monday on an online reservation platform. .

This means that it is likely that more Russian gas will be available in Europe in August, which will put downward pressure on prices.

“The news that could really see gas prices across the curve losing some risk premium is that the United States and Germany are expected to announce a deal in the coming days that will end a dispute over Russia’s North gas pipeline. Stream 2, “Refinitiv analysts said in a statement. daily research note.

The United States and Germany are expected to announce a deal resolving their long-standing dispute over the $ 11 billion pipeline in the coming days, sources told Reuters on Monday.

The UK August gas contract fell 2.05p to 87.25p / therm.

The price of day-ahead gas at the Dutch TTF hub has fallen from 1.12 euros to 35.08 per megawatt hour.

The EU benchmark carbon contract of December 21 was down 0.03 euros to 52.38 euros per tonne.

UK benchmark UKAFMc1 carbon contract on December 21 was down 0.55 pounds to 43.35 pounds per tonne.
Source: Reuters (Reporting by Susanna Twidale; editing by Nina Chestney)

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