May 13, 2019 / 7:39 AM / a year ago

UK GAS-Prices slump as warmer weather returns

LONDON, May 13 (Reuters) - Prompt British wholesale gas prices fell more than 10% on Monday morning as forecasts for warmer weather curbed demand, leaving the system oversupplied.

* Within-day gas price down 6.00 pence at 32.50 pence per therm by 0723 GMT

* Day-ahead gas price down 3.25 pence at 33.10 p/therm

* Traders said higher temperatures expected across the country over the next few days led to lower gas demand

* “Temperatures are a lot warmer than last week …and the system looks comfortably long as a result,” a UK-based gas trader said

* Gas system oversupplied by 30 million cubic meters (mcm) with demand forecast at 198.7 mcm and flows at 228.7 mcm/day, National Grid data showed

* Temperatures in Britain are expected to average 10.8 degrees Celsius on Monday and 11.7 degrees on Tuesday, Eikon Refinitiv data showed

* The forecasts were 2.1 degrees and 1.4 degrees respectively higher than previously forecast, the data showed

* “As weather conditions become warmer this week day-ahead LDZ (local distribution zone) forecast is 8 mcm down,” analysts at Refinitiv said in a daily research note

* Deliveries of liquefied natural gas (LNG) expected over the next few days also weighed on the front month contract, traders said

* June contract was down 1.20 p at 31.50 p/therm

* Four LNG tankers are expected to arrive in Britain in the next seven days

* Day-ahead gas price at the Dutch TTF hub were down 0.04 euro at 14.02 euros per megawatt hour

* Benchmark Dec-19 EU carbon contract were down 0.22 euro at 25.40 euros per tonne (Reporting by Susanna Twidale; editing by Jason Neely)

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