UK GAS-Prices mostly fall on oversupply as flows return
British wholesale gas prices were mostly lower on Friday, as oversupply and the return of sites from maintenance weighed on the market.
* Within-day contract down 0.35 pence at 58.40 p/therm at 0830 GMT.
* Traders said increasing supply, as sites returned from outages and maintenance, had contributed to depressed prices.
* Flows from the Bacton Seal terminal were around 10 million cubic metres (mcm) on Friday morning, up from 8 mcm the previous day, while flows from the Easington Dimlington terminal were around 6 mcm as the site returned from an unplanned outage, National Grid data showed.
* Gas system 13.8 mcm oversupplied, with demand forecast at 165.1 mcm/day and flows at 178.9 mcm/day, National Grid data showed.
* Day-ahead prices rose, however, with analysts at Thomson Reuters expecting stronger demand next week from gas-fired power stations to offset a dip in demand for heating.
* The analysts forecast power plant demand would be 6 mcm higher on Monday on expectations of lower output from the country’s wind farms next week.
* Day-ahead local distribution zone demand, which is primarily used for heating, was forecast down 4 mcm, the analysts said.
* Further out on the curve prices slipped.
* September contract down 0.48 p at 59.90 p/therm.
* Day-ahead gas price at the Dutch TTF hub down 0.17 euro at 22.50 euros per megawatt hour.
* Benchmark Dec-18 EU carbon contract up 0.06 euro at 17.66 euros per tonne.
Source: Reuters (Reporting By Susanna Twidale; Editing by Susan Fenton)