UK GAS-Prompt prices slip as strong wind output curbs demand
- Traders said demand is still weak for gas and that an increase in wind power output has led to less demand from gas-fired power plants, leaving the system oversupplied.
LONDON: Prompt British wholesale gas prices dipped on Thursday morning as demand for gas from power stations fell.
The within-day contract was down 0.40 pence at 11.25 p/therm by 0930 GMT.
The day-ahead contract was flat at 11.25 p/therm.
Traders said demand is still weak for gas and that an increase in wind power output has led to less demand from gas-fired power plants, leaving the system oversupplied.
Peak wind power generation is forecast at 9.2 gigawatts (GW) on Thursday and 9 GW on Friday, Elexon data showed.
Britain's gas system was oversupplied by 7.6 million cubic metres (mcm) with demand forecast at 169.1 mcm and flows at 176.7 mcm/day, National Grid data showed.
Analysts at Refinitiv forecast gas demand for power at 29 mcm on Thursday falling to 25 mcm on Friday.
The forecasts were 23 mcm and 3 mcm lower respectively than previous forecasts.
Further out on the curve prices edged lower.
The July contract was down 0.30 p at 11.75 p/therm.
The Winter 2020 contract was down 0.20 p at 30.75 p/therm.
The day-ahead gas price at the Dutch TTF hub was down 0.1 euro at 4.47 euros per megawatt hour.
The benchmark Dec-20 EU carbon contract was down 0.54 euro at 22.37 euros per tonne.
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