UK gas prices edged up early on Tuesday after Monday’s fall, but the system was well supplied and demand only increased marginally, traders said. 

Gas for Wednesday was up 2.30 pence at 19.00 pence per therm compared with day-ahead contracts late on Monday, while within-day was up 3.80 pence at 18.80 pence per therm.

Along the curve, gas for September was up 0.10 pence at 20.00 pence per therm, while October was up 0.25 pence at 26.70 pence and November increased by 0.30 pence to 35.50 pence.

“It’s not crashing off anymore, people are possibly profiting from yesterday. There’s also a bit more demand than Monday,” one trader said.

National Grid forecast demand to be 185 million cubic metres (mcm), still below seasonal norms of 210 mcm, while National Grid data showed gas flow from Langeled and St. Fergus remaining high at over 40 mcm at 0913 GMT. Confidence in supply was also boosted on the expected arrival of two liquefied natural gas tankers on Wednesday and Saturday at Britain’s South Hook terminal. 

In the power market, prices eased but were supported by supply outages fears and exports to France. Baseload power for Wednesday was at 37.10 pounds per megawatt hour, against 37.20 pounds for day-ahead contracts late on Monday, while October dipped five pence to 36.10 pounds. “A few power stations went down this morning,” one power trader said. British power was also being exported to France via the interconnector early on Tuesday, with electricity flow at 510 megawatts at 0907 GMT, National Grid data showed.

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