France: Temperature and storage drives PEG prices upwards
PEG Nord made gains across the spot, prompt and curve on Wednesday, mirroring surges on the NBP and neighbouring continental hubs, which were particularly bullish on the curve.
France's depleted storage levels (49.05% full on Thursday according to data from Gas Storage Europe) also helped to support prices on the spot and front month.
"If the discount between PEG Nord January '11 and PEG Nord Day-ahead continues to narrow, we could see the pace of storage withdrawals begin to slow down as people will begin to realise that they can also sell their gas for a good price in January," a trader commented.
PEG Nord January '11 closed at only a €0.30/MWh discount to PEG Nord Day-ahead.
The contract was pushed up by colder temperature forecasts in the new year, as were its equivalents on other continental hubs.
PEG Nord February '11 and PEG Nord March '11 also saw active trading on Thursday. They closed at €24.40/MWh and €24.10/MWh respectively.
A Within-day trade went through at €27.00/MWh because of the tight system in the PEGs.
PEG Sud Day-ahead closed at a €0.30/MWh discount to PEG Nord. JSH
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