UK Gas prices have increased this morning, following big news surrounding the UK’s Rough storage.
UK temperatures are set to remain hot today and tomorrow, turning cooler towards the end of the week. This cool will only be for a small period, before warm weather returns for July.
The UK system is around 18mcm short this morning, highlighting increasing demand. Visund plant is experiencing an unplanned outage. Langeled is having to ramp up today, as the Dornum and Emden outage power on.
This morning, Centrica has announced that the UK’s largest storage facility Rough will be permanently closed. Cushion Gas is expected to take around 3 winters to empty out of Rough, offering support to the curve this morning.
UK Power prices have also opened with increases this morning, reacting to the increases in Gas following the Rough announcement.
Following extremely weak wind generation levels this week, wind is expected to increase towards the end of the week, particularly Friday and Saturday. It is then expected to stabilise next week.
UK Gas prices have risen this morning on the back of a short UK system (a lot shorter than we have been seeing in the last couple of weeks), and news surrounding the permanent closure of the UK’s Rough storage site.
Possibly limiting rises this morning, is the fall in Oil prices. Prices continue to fall as consistent signs of rising supply undermine any OPEC attempts to limit supply.
Dutch and French Gas prices have opened around yesterday’s levels this morning.
Continuing warm weather on the continent – especially hot in France. Slight increases in demand next week, as cooler revisions filter through for next week.
Norwegian imports to the continent are lower this morning, due to ongoing Emden maintenance. Montoir LNG send outs are remaining strong.
Some volatility could be seen today on prices following Centrica’s announcement that it will end Rough’s status as a storage facility, recoverable cushion Gas will be retrieved over several years.
Dutch and German Power prices have increased across the curve this morning.
Wind levels are expected to increase towards the end of the week and become stronger, stabilising into next week. Solar production should fall at the end of this week, and similar to wind stabilise into next week.
Coal prices have increased this morning, as rises in European Gas prices allowed API2 to catch up with the ongoing strength in Asian Coal markets.
As with all markets this morning, providing volatility is the Rough news. As Centrica announce that the site will be permanently closed, this offers support to prices.