UK GAS-Prices rise on undersupplied market

• The within-day contract was 1.20 pence higher at 18.50 pence per therm by 0905 GMT.
• Liquefied natural gas send-out is also lower - by 7 mcm from the previous day.
• Peak wind generation is forecast to fall to 7.9 gigawatts (GW) on Friday from 12.5 GW on Thursday, Elexon data shows.

LONDON: British wholesale gas prices rose on Thursday morning due to undersupply and as crude oil prices jumped.

The within-day contract was 1.20 pence higher at 18.50 pence per therm by 0905 GMT.

The day-ahead contract was up by 1.80 pence to 18.70 p/therm, while weekend gas was 1.55 pence higher at 17.55 p/therm.

Norwegian flows to Britain are 29 million cubic metres (mcm) lower than the previous day, according to Refinitiv Eikon data.

Liquefied natural gas send-out is also lower - by 7 mcm from the previous day.

Demand was forecast at nearly 232 mcm and flows at 225 mcm/day, leaving the system undersupplied by 7 mcm, National Grid data shows.

On the demand side, gas-for-power demand for the day-ahead is up 24 mcm from the previous day at 54 mcm.

Peak wind generation is forecast to fall to 7.9 gigawatts (GW) on Friday from 12.5 GW on Thursday, Elexon data shows.

Lower wind output typically increases demand from gas-to-power plants.

The May contract was 0.95 pence higher at 17.05 p/therm.

Crude oil futures jumped 10pc on Thursday after US President Donald Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war and Russian President Vladimir Putin called for a solution to "challenging" oil markets.

In the Dutch gas market, the day-ahead gas price at the TTF hub was 0.18 euro higher at 7.15 euros per megawatt hour.

The benchmark Dec-20 EU carbon contract rose by 0.68 euro to 17.76 euros a tonne.

Greenhouse gas emissions regulated under Europe's carbon market fell by 8.7pc last year, preliminary like-for-like European Commission data examined by carbon analysts at Refinitiv showed.