UK GAS-Prompt prices slip as strong wind power curbs demand
British wholesale gas prices mostly fell on Friday morning as strong output from the country’s wind farms curbed demand for other fuels, leaving the market oversupplied.
* The day-ahead contract was down 0.70 pence at 24.00 p/therm by 0850 GMT.
* The within-day contract was down 2.30 p at 23.00 p/therm
* The weekend contract was down 1.00 p at 23.00 p/therm.
* “Low gas for power demand is the main generator of physical oversupply,” analysts at Refinitiv said in a daily research note.
* Britain’s gas system was oversupplied by 5.4 million cubic metres (mcm) with demand forecast at 154.1 mcm and flows at 159.5 mcm/day, National Grid data showed.
* Peak wind power generation is forecast at 8.1 gigawatts (GW) on Friday, rising to almost 9.6 GW on Saturday, Exelon data showed.
* Traders said an end to a strike by French nuclear power workers on Thursday evening was also bearish for the market.
* France is a net power exporter in Europe, meaning there may be a need for more gas across the continent to replace some French power imports.
* The French unions have threatened to hold another strike on October 10.
* October contract up 0.15 p at 32.70 p/therm.
* Day-ahead gas price at the Dutch TTF hub down 0.70 euros at 8.60 euros per megawatt hour.
* Benchmark Dec-19 EU carbon contract up 0.40 euros at 26.39 euros per tonne.
Source: Reuters (Reporting by Susanna Twidale; Editing by Jan Harvey)