Gas stores go large on the weekend – DMR

More gas was piped into the UK’s stores over the weekend as prices “collapsed”, according to the daily market report from npower. Unusually warm temperatures last week saw the UK […]

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By Vicky Ellis

More gas was piped into the UK’s stores over the weekend as prices “collapsed”, according to the daily market report from npower.

Unusually warm temperatures last week saw the UK experience hottest Halloween on record – spelling less demand for gas from households.

Steve Walker, Client Portfolio Manager at the supplier’s Optimisation Desk said: “Understandably storage injections through the weekend were large as prompt prices collapsed last week.”

Some medium range gas sites are nominated to inject this morning, he said, around 25 million cubic meters (mcm).

Noting a “tighter” within day market, i.e. there’s less spare gas available to buy immediately, the analyst said this “should see prompt contracts rise”.

That is, providing there is still the option for traders “to sell that volume back and capture that spread between the traded price last week and where the spot market is currently trading.”