France: Day-ahead moves up despite morning sell off
PEG Nord Day-ahead was sold off during the day on Friday, but corrected in the afternoon to close at a premium to its closing price on Thursday, at €22.50/MWh.
The contract opened at around €22.20/MWh on Friday morning, but was sold off through the morning and early afternoon, to trade at €21.80/MWh at 14:30 GMT.
The selling pattern was influenced by movements on the Dutch TTF, which shed value during the day, and the British NBP, which lost value due to bearish supply fundamentals.
PEG Nord Day-ahead was bought up in a series of bids but no offers as the close approached, which was explained by traders as a "correction" towards its true value.
Meanwhile, February '11 retained a lower value in comparison to Day-ahead, closing at €21.45/MWh. €0.30/MWh below its value the previous session.
The new month rolls over on Tuesday, so demand for the February '11 contract is dwindling.
Traders reported at least three big utilities continuing to trade Summer '11 and Winter '11 as a spread to its TTF equivalents, which explains the extra activity on these contracts.
French demand remains high, according to consumption figures from the country's transmission services operator GRTgaz, which show 135.27 million cubic metres (Mm³)/day in the past seven days, compared to 103.74Mm³ the week before.
LNG sendout from the Fos LNG terminal has dropped dramatically in the past few days from 35.25Mm³ on 21 January to 24.09Mm³ on 26 January.
The tighter LNG supply in the south could be behind PEG Sud Day-ahead's closing level on Friday, which was flat to PEG Nord Day-ahead. JSH
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19 Jun 2013 21:17
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19 Jun 2013 21:17
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EDEM,ESGM
