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Markets

Prices down on mild weather, strong wind

Published Updated

British wholesale gas prices fell on Tuesday as above-normal temperatures and strong power output from wind turbines curbed demand.

* Day-ahead gas was down 1.35 pence at 65.10 pence per therm at 1007 GMT.

* Within-day gas price down 1.00 pence at 65.70 p/therm.

* Gas prices fell mostly due to milder weather and strong wind power production that neared maximum turbine capacity, a trader said.

* Peak wind generation is forecast at 11.5 gigawatts on Tuesday but is expected to fall to 7.0 GW on Wednesday.

* Average daily temperatures in Britain are expected to be 8.5 degrees Celsius on Tuesday, falling to 6.6 C on Wednesday.

* Prices fell despite a slight supply gap in the system. Demand was forecast at 276.5 million cubic metres/day and flows at 269.4 mcm/day, National Grid data showed.

* Norwegian gas flows to Britain fell to 103 mcm/day, from 115 mcm/day on Monday, as flows through the Vesterled pipeline declined.

* One vessel with liquefied natural gas arrived in Britain on Sunday and two more are expected in the next six days. .

* Jan contract fell 1.45 p to 66.30 p/therm.

* Day-ahead Dutch gas at the TTF hub fell by 0.55 euro to 24.00 euros per megawatt hour.

* The benchmark Dec-19 EU carbon contract fell by 0.50 euro to 24.10 euros a tonne.

Copyright Reuters, 2018

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