UK GAS-Prompt prices rise with temperatures, wind output set to dip
Prompt British wholesale gas prices rose on Tuesday morning, with temperatures expected to dip and lower forecasts of output from the country’s wind farms lifting demand.
* Day-ahead gas price up 0.67 pence at 59.25 pence per therm by 0825 GMT.
* Within-day gas price up 0.65 pence at 58.25 p/therm.
* Traders said colder than previously expected short-term forecasts helped lift prices.
* Average temperatures in Britain were forecast at 2.7 degrees Celsius, dropping to -0.1 degree on Wednesday according to Eikon Refinitiv weather data.
* Wednesday’s forecast was 2.8 degrees lower than previously expected, the data showed.
* Refinitiv analysts forecast local distribution zone gas demand, which is primarily for home heating, at 260 million cubic metres/day (mcm/d), rising to 277 mcm/d on Wednesday.
* Demand from gas-fired power stations was also expected to rise as electricity output from wind farms drops on Wednesday to 2.9 gigawatts (GW) from 7.9 GW on Tuesday, National Grid data showed.
* Traders said the rise in prices was limited by strong gas supplies.
* Gas system oversupplied by 23.9 mcm with demand forecast at 369.3 mcm and flows at 393.2 mcm/day, National Grid data showed.
* February contract up 0.05 p at 59.35 p/therm.
* Day-ahead gas price at the Dutch TTF hub down 0.10 euro at 21.70 euros per megawatt hour.
* Benchmark Dec-19 EU carbon contract up 0.11 euro at 24.57 euros per tonne.
Source: Reuters (Reporting by Susanna Twidale; Editing by Dale Hudson)