UK GAS-Prices mixed, driven by weather forecasts
British wholesale gas prices were mixed on Wednesday morning as forecasts of milder temperatures in the coming days dragged down the within-day price and other prompt contracts were lifted by a colder longer-term forecast.
* Within-day gas price down 0.50 pence at 57.00 p/therm, by 0857 GMT.
* Day-ahead gas price up 0.70 pence at 57.50 p/therm and working days next week contract up 1.75 pence at 55.75 p/therm.
* “The system looks comfortable today but further out it’s forecast colder,” a gas trader said.
* Gas system almost balanced, with demand forecast at 304 million cubic metres (mcm) and flows at 304.7 mcm/day, National Grid data showed.
* April contract up 0.50 at 51.95 p/therm, on expectations of cooler weather than previously forecast.
* “The latest EC12 ENS (temperature model) daily forecast for LDZ (local distribution zone) consumption brings a slightly downright correction for a remainder of the month,” analysts at Thomson Reuters said in a daily research note.
* “However, the first days of April are expected colder compared to the previous forecast,” the analysts said.
* Home heating accounts for around 40 percent of Britain’s gas use, meaning temperature can have a big impact on demand.
* Another liquefied natural gas tanker is due to arrive in Britain this month, bringing the total to three.
* Winter 2018 contract up 0.46 at 53.41 p/therm.
* Day-ahead gas price at the Dutch TTF hub up 0.21 euro at 21.63 euros per megawatt-hour.
* Benchmark Dec-18 EU carbon contract up 0.26 euro at 11.81 euros per tonne.
Source: Reuters (Reporting By Susanna Twidale; editing by Nina Chestney)