Higher demand to support European hub prices

By Catriona Scott 11 January 2017
  • Twitter logo
  • LinkedIn logo
  • facebook logo
  • Email logo

Colder weather is set to hit major European markets over the coming week, boosting heating-related demand and supporting gas prices. A cold snap is forecast to hit much of the UK over the next few days. This follows relatively mild temperatures and weak seasonal consumption, with the UK’s gas demand forecast to be around 3% below seasonal norms on Wednesday.

Although the cold snap is expected to be followed by comparatively mild weather next week, the colder temperatures and snow that are forecast will support a rise in prices and increase the risk of price volatility. The NBP day-ahead was around 53 p/th on Tuesday, an increase of more than 2 p/th from Monday. With restricted maximum daily withdrawals and relatively low volumes of gas in stock at the UK’s Rough storage facility, flows from the continent will be especially important to the UK’s short-term supply balance.

Log in or register for a free trial to continue reading this article

Already a subscriber?

If you already have a subscription, sign in to continue reading this article.

Sign in

Not a subscriber?

To access our premium content, you or your organisation must have a paid subscription. Sign up for free trial access to demo this service. Alternatively, please call +44 (0)20 3004 6203 and one of our representatives would be happy to walk you through the service.

Sign up