UK GAS-Prices fall on oversupply, warmer temperature forecasts
British wholesale prompt gas prices fell on Thursday morning due to an oversupplied system and forecasts for warmer temperatures.
* Day-ahead gas price down 0.35 pence at 57.50 pence per therm by 0906 GMT.
* Within-day gas price down 1.30 pence at 57.70 p/therm.
* “Near-term gas is very well supplied, pushing prices lower,” a trader said.
* The UK gas system is oversupplied by around 14 million cubic metres (mcm), with demand forecast at 344 mcm and flows at 358 mcm/day, National Grid data shows.
* Average temperatures in Britain are expected to be 4.7 degrees Celsius, rising to 6.8 degrees on Friday, Eikon Refinitive data shows.
* “After a period of milder weather and softer consumption expected from tomorrow, our forecast indicates temperatures dropping to the seasonal normal level towards the end on next week,” Refinitiv gas analysts said
* Stronger output from the country’s wind farms is expected to curb gas demand on Friday.
* Peak wind power generation is forecast at 4.9 gigawatts (GW) on Thursday, climbing to 8.1 GW on Friday, National Grid data showed.
* February contract down 0.15 p at 59.75 p/therm.
* Day-ahead gas price at the Dutch TTF hub down 0.03 euro at 21.10 euros per megawatt hour.
* Benchmark Dec-19 EU carbon contract down 0.12 euro at 21.91 euros per tonne.
Source: Reuters (Reporting by Susanna Twidale; editing by Nina Chestney)