April 17, 2018 / 8:22 AM / 9 days ago

UK GAS-Prompt prices fall as weather forecasts turn warmer

LONDON, April 17 (Reuters) - Prompt British wholesale gas prices fell on Tuesday morning as forecasts for warmer weather curbed demand.

* Day-ahead gas price down 0.95 pence at 49.60 p/therm by 0834 GMT.

* Within-day contract down 2.00 p at 49.50 p/therm.

* Traders said prices fell as temperatures are expected to hit highs of over 20 degrees Celsius later this week.

* “The weather models have trended even warmer for balance of this week and into early next week,” one gas trader said.

* Analysts at Thomson Reuters said demand is expected to fall, with day-ahead local distribution zone demand forecast 18 mcm lower at 107 million cubic metres (mcm).

* Gas system slightly oversupplied with demand forecast at 182.9 mcm and flows at 186.3 mcm/day, National Grid data showed.

* However, demand was 22 percent below the seasonal norm of 235.7 mcm, the data showed.

* The May contract bucked the trend and was up 0.15 p at 49.40 p/therm.

* The analysts said temperatures are expected to return to seasonally normal levels next month.

* Further out on the curve other contracts slipped.

* Q3 2018 contract down 0.20 p at 47.80 p/therm

* Winter 2018 contract down 0.60 p at 55.40 p/therm

* Day-ahead gas price at the Dutch TTF hub up 0.08 euro at 19.38 euros per megawatt-hour.

* Benchmark Dec-18 EU carbon contract down 0.08 euro at 13.92 euros per tonne.

* Thomson Reuters analyst view:here (Reporting by Susanna Twidale; editing by Nina Chestney)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below