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UK GAS-Prompt prices rise as imports from Norway fall

British prompt wholesale gas prices rose on Wednesday morning as low imports from Norway left the market slightly undersupplied, while the curve dipped on weaker prices across the energy complex.

* The day-ahead contract was up 1.90 pence at 26.50 pence per therm by 0846 GMT.

* Gas for weekend delivery was 1.75 p higher at 26.00 p/therm, while working days next week was up 1.75 p at 33.00 p/therm.

* “Related fuels are all softer but day-ahead (gas) is up on an undersupplied system and reduced Langeled (flows). The underlying trend is still bearish,” said Wayne Bryan, senior European energy & commodity analyst at Alfa Energy.

* Imports from Norway through the Langeled pipeline were around 38 million cubic metres (mcm), down from around 46 mcm the previous day.

* Analysts at Refinitiv said more supply would need to be drawn from Britain’s gas storage sites to offset the lower imports.

* “Storages are nominated at net withdraw of 3 mcm/day this morning and it may need to ramp up during the day,” the analysts said in a daily research note.

* Britain’s gas system was undersupplied by 2.2 mcm with demand forecast at 231.4 mcm and flows at 229.2 mcm/day, National Grid data showed.

* Further out on the curve, prices were down, dragged lower by a weaker energy complex.

* Oil prices dipped on Wednesday as U.S. industry data showed a bigger-than-expected build in crude stocks.

* November gas contract down 0.42 p at 40.25 p/therm.

* Day-ahead gas price at the Dutch TTF hub up 0.25 euro at 10.57 euros per megawatt hour.

* Benchmark Dec-19 EU carbon contract down 0.51 euro at 25.15 euros per tonne.
Source: Reuters (Reporting By Susanna Twidale;p editing by Nina Chestney)

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