January 27, 2017 / 9:05 AM / in 3 years

UK GAS-Prices fall on oversupply, milder weather outlook

* Gas system oversupplied by 8 mcm

* Temperatures to rise by a few degrees by weekend

LONDON, Jan 27 (Reuters) - British wholesale gas prices fell on Friday morning as the gas system was oversupplied and slightly milder temperatures were forecast from the weekend.

The day-ahead contract was down 1.90 pence at 51.10 pence/therm at 0854 GMT, while the within-day contract was 1.40 pence lower at 52.20 p/therm.

Demand is forecast at 337 million cubic metres (mcm) and flows at 345 mcm/day, leaving the system oversupplied by 8 mcm, National Grid data shows.

UK Continental Shelf flows were at 183 mcm/day and InterconnectorUK imports were slightly higher at 9 mcm/day.

Temperatures in the south of England are forecast to rise by a few degrees by the weekend, with winds easing and more rainfall expected next week, Britain’s Met Office said.

Peak wind generation is forecast to fall to around 4.7 gigawatts (GW) on Saturday from 5.9 GW on Friday, Elexon data shows.

Further out on the curve gas, the Winter 2017 contract was down 0.50 pence at 49.70 p/therm.

Coal prices weakened on Friday. The benchmark API2 2018 futures price was down $1.15 at $65.00 a tonne.

“Coal remains a key driver for gas markets, with gas prices in the middle of the coal switching range in the UK and close to the highest margin of the range for TTF (Dutch gas),” said Thomson Reuters analysts.

In the Netherlands, the day-ahead gas price at the TTF hub fell by 0.65 euro to 19.60 euros per MWh.

In the European carbon market, the benchmark Dec-17 contract was 0.11 euro lower at 5.09 euros a tonne. (Reporting 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