LONDON: Prompt British wholesale gas prices rose on Tuesday morning, recovering from near two-year lows hit a day earlier as supply and demand in the market was almost balanced.
Within-day gas price up 0.70 pence at 26.75 p/therm by 0822 GMT
Day-ahead gas price up 0.90 pence at 27.00 pence per therm
Traders said prices had gained ground after slumping to near two-year lows on Monday as high imports from Norway left the market oversupplied and demand was weak due to warm temperatures and strong output from Britain's renewable power generators
"The gas system is more balanced today compared with yesterday's oversupply," a gas trader said
Tuesday gas demand was forecast at 195.5 million cubic meters (mcm) and flows at 191.9 mcm/day, National Grid data showed
Analysts at Refinitiv said a pick-up in demand for gas for power generation also helped to buoy prices
"Strong wind production which curbed gas for power demand is forecast to slow down," analysts at Refinitiv said in a daily research note
Norwegian oil and gas workers on Tuesday struck a wage deal with employers averting the outbreak of a strike that could have shut down more than 30 mcm/day of gas production
Imports from Norway through the Langeled pipeline were around 74 mcm, close to full capacity
Further out on the curve prices also rose with the July contract up 0.90p at 27.55 p/therm
Winter 2019, contract up 0.25p at 51.40 p/therm
Day-ahead gas price at the Dutch TTF hub up 0.37 euro at 15.55 euros per megawatt hour
Benchmark Dec-19 EU carbon contract up 0.08 euro at 22.82 euros per tonne.
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