LONDON: Prompt natural gas prices in Britain edged higher on Thursday, supported by tight supply in the short term, as flows were reduced from Norway and the Netherlands. Gas prices for within-day delivery were up 0.3 percent at 45.55 pence per therm at 1030 GMT.
National Grid data showed the system was around 4 million cubic metres (mcm) undersupplied, with supply flows at around 283 mcm, while demand was forecast at around 287 mcm. Flows from Norway's Langeled pipeline were slightly lower from Wednesday, while Dutch imports were also down, due to cooler weather outside of Britain. Forecasts for Britain's temperatures to rise on Friday were seen curbing demand for heating.
Prices for delivery on Friday fell 0.25 pence to 45.25 pence per therm. "Tighter supplies have seen prompt prices open higher, though gains on the day-ahead contract have been limited with Friday forecast to be the warmest day over the balance of January," said Marcel Boonaert, head of trading at gas supply company Wingas UK.
Further along the curve, gas for delivery in summer were 0.8 percent higher at 43.80 pence per therm, aided by firmer oil prices, after a recent slide. Forward gas contracts are vulnerable to oil prices due to a longstanding practice which fixes long-term gas prices to crude.
Brent bounced around $51 a barrel on Thursday as bulls and bears tugged at both ends in their search for a bottom in the second-biggest price rout on record.
In the Netherlands, the day-ahead gas price at the TTF hub was 0.05 euros higher at 19.20 euros per megawatt-hour. The benchmark European Union carbon price dipped 0.03 euros to 6.84 euros a tonne on ICE Futures Europe.
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