British prompt business gas prices recovered on Tuesday from a three-year low reached on Monday which traders said had been overdone, while prompt power prices firmed slightly on higher coal, gas and oil.  The planned re-opening of the Interconnector pipeline on Wednesday, which will allow surplus gas to be sold outside of Britain, has been a major factor in the price recovery, traders said.

“Within day prices fell drastically yesterday because the system was very long and Transco had to sell. The lowest they sold at was 3.5 pence per therm. But there had to be a reaction back up, it was oversold,” one gas trader said.

The closure of the Interconnector pipeline until Wednesday, Sept. 23 and the end of maintenance at Norway’s Ormen Lange gas field and Britain’s Theddlethorpe gas terminal added to the perception of a gas glut on Monday, traders said.

“The system is in balance this morning so gas prices are up a bit,” the gas trader added.

day-ahead gas prices were trading at around 20.75 pence per therm, up about 8 pence from Monday’s close and up slightly from Tuesday’s opening at 19.00 pence. Within day gas prices were trading at around 12.10 pence per therm at 1500, up just over 5 pence from Monday’s close but down from Tuesday morning’s opening levels of around 16.5 pence per therm.

Day ahead prices closed on Monday at 19.00 pence per therm and were trading on Tuesday morning at 21 pence.

October gas prices were up around 0.5 pence on Monday’s close and further down the curve forward prices had risen about 0.25 pence.

Baseload electricity for Wednesday stood at 31.40 pounds for day ahead contracts, down from a morning high of 32.50. October was trading at 34.35 pounds.

“Oil has firmed up a bit, coal is slightly stronger and gas is a touch firmer so the power has moved up a little with them,” one power trader said.

Related posts...

• June 22, 2010 -- UK Business Energy Prices: (3)
  A new survey carried out by the Economist Intelligence Unit has revealed that over 80% of British firms expect energy and fuel prices to rise sharply and almost 50% have great concern that the UK coul...
• February 21, 2010 -- Identifying a Half Hour Meter: (0)
  How to find out if you have a half hourly meter – So how do you know if you have a half hour meter?  It’s actually quite straight forward, and all you will need to find this out is a recent copy o...
• February 10, 2010 -- UK Business Gas Prices: (0)
  Business Gas Prices can be difficult to understand, as there are many different types of pricing structures available.  You could simply ring around and obtain gas prices direct from suppliers, but it...
• February 7, 2010 -- Oil Prices Back To $70 Range: (0)
  Oil prices plunged in a busy trading session on Friday, triggering big losses across the commodities markets, as investors went back to buying into the US dollar.  Crude oil prices did have a partial ...
• February 5, 2010 -- CRC Business Lights: (1)
  The era of the 'on-all-night' illuminated high street could end, the Environment Agency is predicting. The agency says new rules will force businesses to switch off lights and displays at night to mee...
• February 3, 2010 -- Bglobal Smart Meter Deal: (3)
  Bglobal Plc said it has signed a new agreement to supply and install smart meters for British Gas Business during 2010. The contract value is anticipated at more than £12 million. In addition, the com...

RSS feed for comments on this post. TrackBack URI

Name (required)

Mail (will not be published) (required)

Website

CAPTCHA Code *