UK GAS-Prices rise on lower wind power forecasts
British wholesale gas prices rose on Friday morning as forecasts for lower output from the country’s wind farms led to an increase in demand from gas-fired power stations.
* Day-ahead gas price up 1.00 pence at 53.00 p/therm by 0725 GMT.
* Within-day contract up 0.80 p at 53.00 p/therm.
* Traders said even though warm weather was likely to curb gas demand for heating next week forecasts show this will be offset by strong demand from power generators.
* Peak wind power generation is forecast at 5.5 gigawatts (GW) on Friday, falling to 2.6 GW on Saturday, National Grid data showed.
* Analysts at Thomson Reuters said its gas for power demand forecast had increased for Monday.
* “Day-ahead gas for power consumption is forecast 12 mcm/day (million cubic meters) up compared to the previous forecasts,” the analysts said in a daily research note.
* Gas system almost balanced on Friday with demand forecast at 147.9 (mcm) and flows at 149.6 mcm/day, National Grid data showed.
* Further out on the curve, prices also rose.
* July contract up 0.75 p at 53.30 p/therm.
* Winter 2018 contract up 0.70 p at 62.25 p/therm
* Day-ahead gas price at the Dutch TTF hub up 0.18 euro at 21.88 euros per megawatt-hour.
* Benchmark Dec-18 EU carbon contract down 0.03 euro at 14.78 euros per tonne.
Source: Reuters (Reporting by Susanna Twidale Editing by Edmund Blair)