July 14, 2017 / 8:01 AM / 2 years ago

UK GAS-Prices decline on oversupply and reduced demand

LONDON, July 14 (Reuters) - British wholesale gas prices declined on Friday morning due to strong supplies and reduced demand. * Within-day gas price down by 0.50 pence to 32.90 pence/therm at 0757 GMT. * Day-ahead gas price down by 0.18 pence to 33.25 p/therm. * Prices have declined due to strong flows, as well as lower demand for gas from gas-fired power stations, traders said * Demand was forecast at around 189 million cubic metres and flows at nearly 200 mcm/day, leaving the system oversupplied by around 11 mcm, National Grid data shows. * Langeled flows are at 45 mcm and UK Continental Shelf flows are at around 100 mcm. * Gas-for-power demand has decreased because wind power output is expected to increase over the weekend. * Peak wind generation is forecast at around 5.9 gigawatts (GW) on Saturday, up from 4.9 GW on Friday, Elexon data shows. * August gas contract down by 0.45 pence at 33.65 p/therm. * Day-ahead gas price at the Dutch TTF hub down by 0.23 euro to 14.82 euros per megawatt hour. * Benchmark Dec-17 EU carbon contract inched down by 0.01 euro to 5.35 euros per tonne. * Thomson Reuters analyst view: here (Reporting by Nina Chestney)

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