UK GAS-Prices mostly fall on improved supply outlook

Credit: REUTERS/Stefan Wermuth

British wholesale gas prices mostly fell on Tuesday morning with supply and demand fairly balanced and as future supply fears eased with a booking of capacity on the Ukraine-Russia pipeline for August.

LONDON, July 20 (Reuters) - British wholesale gas prices mostly fell on Tuesday morning with supply and demand fairly balanced and as future supply fears eased with a booking of capacity on the Ukraine-Russia pipeline for August.

The day-ahead contract TRGBNBPD1 was down 1.80 pence at 88.00 p/therm by 0840 GMT.

Britain's gas system was almost balanced, with demand forecast at 139.4 million cubic metres (mcm) with and flows at 136.1 mcm/day, National Grid data showed.

Russian gas giant Gazprom GAZP.MM booked additional capacity of 15 mcm per day for transit of its gas via Ukraine to Europe in August, monthly auction results at an online booking platform showed on Monday.

This means it is likely more Russian gas will be available in Europe in August, putting downwards pressure on prices.

“The news that could really see gas prices across the curve shed some risk premium is that the U.S. and Germany are due to announce a deal in the coming days that ends a dispute over Russia's Nord Stream 2 pipeline,” analysts at Refinitiv said in a daily research note.

The U.S. and Germany are expected to announce a deal resolving their longstanding dispute over the $11 billion pipeline in coming days sources told Reuters on Monday.

The August British gas contract TRGBNBPMQ1 fell 2.05 p to 87.25 p/therm.

The day-ahead gas price at the Dutch TTF hub TRNLTTFD1 was down 1.12 euro at 35.08 per megawatt hour.

The benchmark Dec-21 EU carbon contract CFI2Zc1 was down 0.03 euro at 52.38 euros per tonne.

The benchmark Dec-21 British carbon contract UKAFMc1 was down 0.55 pounds at 43.35 pounds per tonne.

(Reporting By Susanna Twidale; editing by Nina Chestney)

((susanna.twidale@thomsonreuters.com; +44 207 5424753;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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