UK GAS-Colder weather, low supplies lift British prompt gas prices
LONDON, Nov 3 (Reuters) - British prompt wholesale gas prices rose on Monday on an undersupplied system as consumption increased due to lower temperatures.
LONDON Nov 3 (Reuters) - British prompt wholesale gas prices rose on Monday on an undersupplied system as consumption increased due to lower temperatures.
Gas for delivery on Tuesday (day-ahead) rose by 3.95 pence or 8.25 percent to 52.80 pence per therm at 0918 GMT, while gas for immediate delivery (within-day) climbed by 4.50 pence or 9.57 percent to 51.50 pence per therm.true
After unseasonably warm weather at the end of October, temperatures in Britain are expected to drop this week, triggering greater demand for energy for heating.
Meteorologists expect drier and cooler conditions in most of Britain from Tuesday with temperatures seen between 8 and 11 degrees Celsius.
"The UK system is short, supporting all prompt contracts," said analysts at Thomson Reuters Point Carbon.
"Consumption surged over the past few days and it is forecast to further increase by 16 mcm/d for (day-ahead), which is a strong bullish driver for the contract," they added.
The British gas system was undersupplied by around 17 million cubic metres (mcm) of gas on Monday morning, with demand seen at 236.7 mcm and flows at 219.3 mcm/day, National Grid data showed.
Further along the curve, the December contract was trading at 54.75 pence per therm, up 1.1 percent, having touched its lowest ever level of 54.00 pence on Friday, when it was the warmest Oct. 31 on record.
Prices also rose in the Dutch gas market.
The day-ahead TTF gas price was 1.05 euros or 5.10 percent higher at 21.65 euros per megawatt hour, and the December contract was up 0.25 euros at 23.15 euros per megawatt hour.
The benchmark European Union carbon price was barely changed, trading 0.03 euros lower at 6.32 euros a tonne on ICE Futures Europe.
(Reporting by Nina Chestney and Sarah McFarlane; editing by Susan Thomas)
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- November 3, 2014
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