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UK GAS-Prices rebound from record lows as Yamal-Europe flows halt

Tuesday, 26 May 2020 | 23:00

Prompt British wholesale gas prices soared on Tuesday morning, rebounding from record lows last week as demand picked up and on reports of a halt in gas flows from Russia through the Yamal-Europe pipeline which crosses Poland.

* The within-day gas price was up 3.7 pence at 11.40 p/therm by 0921 GMT.

* The day-ahead contract was up 1.70 pence at 11.00 p/therm.

* Russian natural gas transit via the Yamal-Europe pipeline, which crosses Poland, halted on Tuesday after almost stopping on Monday following the expiration of a gas transit deal earlier in the month, Interfax news agency reported citing German pipeline operator Gascade.

* “The (UK) market was shut yesterday so people have come in this morning and are playing catch up,” a gas trader said.

* “After last week’s sell off a rebound isn’t a surprise,” he said.

* Following the expiration of the deal, capacity through the pipeline is being sold via auction, Poland’s gas grid operator Gaz-System said.

* Analysts said the flows would likely return when capacity is booked.

* British gas prices hit record lows on Friday as the weekend bank holiday period exacerbated already weak demand amid warm temperatures and high renewable power output.

* Further out on the curve prices also rose on Tuesday.

* The June contract was up 1.50 p at 11.25 p/therm.

* The Winter 2020 contract was up 1.11 p at 31.35 p/therm.

* The day-ahead gas price at the Dutch TTF hub was up 0.27 euro at 4.30 euros per megawatt hour.

* The benchmark Dec-20 EU carbon contract was down 0.04 euro at 21.55 euros per tonne.
Source: Reuters (Reporting By Susanna Twidale; Editing by Kirsten Donovan)

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