Zeebrugge: Low storage levels provide floor for near curve
On the Belgian prompt, Day-ahead slid towards a floor of 50.00 p/th during the second half of January. Milder weather, both on the prompt and forecast for the near-curve, and generally healthy North Sea supply into Britain were the main factors behind the price erosion. Prices rose briefly on some occastion due to minor field outages, but the bearishness resumed quickly each time. Day-ahead basis closed mostly negative, around – 0.60 p/th mark – and the Interconnector remained in UK import mode. Every mild day that passes erodes the risk premium for the rest of the winter, traders said. Still, the seasonally low storage leves provided a floor for February and March.
Further out on the curve, the previous bullishness halted briefly on the back of what appeared to be profit-taking. The resulting lower prices then appeared to lure out financial players again, reopening long positions, which has made the far end claw back of their losses.
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