LONDON: British prompt gas prices edged up on Tuesday morning as cold weather drove demand higher and the gas network was marginally undersupplied.
Gas prices for delivery within the day were trading at 66.85 pence per therm at 1030 GMT, up 0.75 pence since opening.
Britain's gas demand was expected to be 253.8 million cubic metres (mcm) on Tuesday, more than 2 percent above the seasonal norm and below nominated flows of 251.4 mcm.
Tuesday's undersupplied system comes despite flows along the Langeled and BBL pipelines, as well as LNG (liquefied natural gas) imports, being adjusted up compared to last week.
"Prompt contracts have opened higher this morning ... as strong consumption and uncertainty over Norwegian imports continue to add a risk premium to short-term contracts," a trader said.
Britain's Met Office said that cold and blustery conditions with maximum temperatures of around 11 degrees Celsius would persist into next week.
"With the weather turning colder over the coming week, we expect the prompt will begin to drift up," analysts at Energy Aspects said in a note.
The contract for December delivery could reach 71.50 pence per therm by the end of the week, Energy Aspects said. The contract is currently trading at 70.40 pence per therm.
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