UK GAS-Prompt prices slip in balanced market, temperatures set to dip

LONDON: Prompt British wholesale gas prices slipped on Wednesday in a balanced market and with temperatures poised to dip from recent highs, curbing power demand for cooling.

The day-ahead contract was down 0.55 pence at 19.20 p/therm by 0915 GMT.

The within-day contract was down 0.30 pence at 19.25 p/therm.

Traders said with supply and demand balanced the market was taking signals from an expected drop in gas demand from power stations with temperatures forecast to fall from recent highs over the coming days.

Britain's gas system was balanced with demand forecast at 147.4 million cubic metres (mcm)/day and flows at 147.6 mcm/day, National Grid data showed.

Gas demand for power was forecast at 58 mcm on Wednesday, falling to 54 mcm on Thursday, analysts at Refinitiv said in a daily research note.

The forecasts were 2 mcm and 5 mcm lower respectively than previous estimates.

"The hot weather which has dominated the UK (in the) last days should start gradually turning towards cooler from tomorrow and temperatures are expected to dip slightly below seasonal normal by the end of 15 days forecast horizon," the Refinitiv analysts said in a daily research note.

The September contract was down 0.40p at 20.85p/therm.

The day-ahead gas price at the Dutch TTF hub was down 0.12 euro at 6.70 euros per megawatt hour.

The benchmark Dec-20 EU carbon contract was down 0.47 at euro at 25.72 euros per tonne.