UK GAS-Prices fall amid domestic output boost, oversupply
British wholesale gas prices fell on Thursday as higher domestic output and slightly lower projected demand left the system oversupplied.
* The within-day contract was down 1.15 pence at 57.00 pence per therm at 0838 GMT.
* The day-ahead price fell 0.32 pence to 57.83 p/therm.
* Flows from Norway were nominated at 79 million cubic metres, lower than Wednesday’s flows of 82 mcm, as British gas prices widened their discount to mainland European trading hubs.
* Domestic gas production was expected to hit 141 mcm on Thursday, higher than the 135 mcm recorded on Wednesday, supported by output from the disused Rough storage facility.
* Exports along the Interconnector were up at 53 mcm, helped by a soft day-ahead price which incentivises buying from the Continent.
* The day-ahead price is likely to slide to keep British gas competitive in Europe where buyers are seeking gas after flows from Russia were reduced due to maintenance along the Yamal pipeline.
* Maintenance at Yamal is scheduled to last until July 14.
* The system is oversupplied by 11.2 mcm with demand forecast at 187.3 mcm and flows seen at 198.5 mcm, National Grid data showed.
* Day-ahead gas at the Dutch TTF hub was 0.17 euro lower at 22.35 euros per megawatt hour.
* The benchmark Dec-18 EU carbon price was 0.18 euro higher at 16.35 euros a tonne.
Source: Reuters (Reporting by Oleg Vukmanovic; Editing by Susan Fenton)