The markets have dipped this morning from last night’s close because of warmer temperatures and falling seasonal demand.
Steven Walker, Client Portfolio Manager on npower’s Optimisation Desk said: “Overnight 30-day temperature forecasts suggest a warming through the period resulting in an eight mcm (million cubic metre) reduction in gas demand which itself falls by 40 mcm a day in the coming weeks.”
The warmer forecast revision should help calm the “markets nerves” caused by Dutch production cuts and “lower levels of flexibility” in the UK, added the analyst.
Mr Walker added: “There’s a fall in CCGT (combined gas cycle turbine) demand to below 30 mcm and Rough is withdrawing up to 36 mcm.
“Continued good nominations through BBL and a slight nudge higher in LNG send-out is contributing to the early predicted closing line pipe length of 11 mcm.”
LNG cargoes have been confirmed in the next couple of weeks which is expected to further “ease the perceived tightness” expected in March, he said.