UK gas prices ease on healthy supply, technicals

Tue Mar 29, 2011 9:04am GMT
 

* Gas demand below seasonal average

* Healthy LNG imports

* But global events still support prices

LONDON, March 29 (Reuters) - British gas prices dropped slightly on Tuesday morning as the system was long due to healthy liquefied natural gas (LNG) imports and moderate demand, traders said.

Winter 2011/2012 gas forward prices were at 74.20 pence per therm at 0830 GMT, down around half a pence a day earlier.

Technical indicators for the contract also looked bearish, with moving average convergence-divergence (MACD) signal lines about to cross and the relative strength index (RSI) also indicating an overbought market. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a technical NBP Winter 11/12 gas graph, click here: here ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Further at the front of the price curve, April contracts were down 0.7 pence since their opening to 61.80 pence per therm.

Gas for day-ahead delivery traded at 61.70 pence, slightly below its level of 62 pence on Monday.   Continued...

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