UK GAS-Prices mostly lower due to oversupply
British wholesale gas prices were mostly lower on Friday morning as UK domestic production ramped up following an outage.
* The within-day contract was down 1.50 pence at 38.00 pence per therm at 0907 GMT.
* The system was oversupplied by around 16 million cubic metres (mcm), with demand forecast at 301 mcm and flows at 317 mcm/day, National Grid data shows.
* Oversupply is mainly due to lower consumption on Friday and the ramp up of UK domestic production as the Culzean field has come back online from an outage.
* “Culzean maintenance scheduled to ramp up today by 11 mcm/d bringing total UKCS production to 130 mcm/d,” Refinitiv gas analysts said.
* Norwegian flows are also slightly higher and liquefied natural gas send-out is strong.
* Day-ahead gas was up by 0.35 pence at 38.50 p/therm.
* Peak wind generation is forecast at 8.2 gigawatts (GW) on Friday but is seen falling to 5.3 GW the next day, Elexon data shows.
* Lower wind output typically increases demand for gas from gas-to-power plants.
* In the Dutch gas market, gas for weekend delivery was down 0.37 euro at 14.43 euros per megawatt hour.
* Benchmark Dec-19 EU carbon contract was 0.38 euro lower at 23.58 euros a tonne.
Source: Reuters (Reporting by Nina Chestney)