UK GAS-Prompt prices fall on oversupply

British prompt wholesale gas prices dropped on Friday morning due to weak demand, with some curve contracts supported by other fuels.
* The day-ahead contract fell by 0.20 pence to 12.50 pence per therm by 0857 GMT.
* The within-day contract dropped by 0.50 p to 12.70 p/therm.
* UK gas system was 6.9 million cubic metres (mcm) oversupplied, with demand forecast at 204 mcm and supply at 210.9 mcm, National Grid data showed.
* The oversupply is due to weak residential consumption and gas-for-power demand amid warmer temperatures, Refinitiv analysts said in a morning note.
* Residential demand was expected at 103 mcm, 15 mcm lower than initially expected.
* Gas-for-power demand forecast dropped by 7 mcm to 27 mcm from an earlier expectation.
* While residential consumption is expected to fall the following day, gas-for-power demand is predicted to go up slightly.
* Supply was little changed day-on-day on Friday.
* Flows from Norway via the Langeled pipeline grew by 3 mcm to 21 mcm on Friday.
* Liquefied natural gas (LNG) sendout and flows from UK Continental Shelf both stepped down by 1 mcm to 70 mcm and 116 mcm, respectively.
* A gas trader said that an upward trend on curve contracts was a result of stroner oil prices, stock markets, as well as a rise in Asian liquefied natural gas prices.
* The UK June contract was up 0.10 p at 12.60 p/therm.
* Oil prices jumped more than 3% on Friday, touching more than one-month highs amid signs that demand for crude was picking up.
* Asian spot LNG prices jumped by at least 20% in a week as supply tightens and demand rebounds in Asia.
* The day-ahead gas price at the Dutch TTF hub was up 0.25 euro at 5.10 euros per megawatt hour.
* The benchmark Dec-20 EU carbon contract was up 0.36 euro at 19.20 euros per tonne.
Source: Reuters (Reporting By Ekaterina Kravtsova; editing by Nina Chestney)