LONDON: British spot gas contracts fell on Monday morning as oversupply put pressure on prices. The day-ahead contract was down 0.20 pence at 36.60 pence/therm at 0820 GMT, the lowest level since September 2010.
According to National Grid data, gas flows were expected to be 203.6 mcm/day, while demand was forecast to be 196 mcm, meaning the system was around 7 mcm oversupplied.
Flows of gas from Norway have increased slightly after maintenance ended on Friday at Norway's Troll and Kvitebjoern gas fields and Centrica's Rough gas storage facility in Britain also came back to service at the weekend. Analysts expect the oversupply of gas to increase when the InterconnectorUK (IUK) pipeline, which exports gas to continental Europe, goes offline for maintenance on June 11.
Further along the curve, gas for July delivery fell by 1.05 pence to 38.60 pence per therm and Winter 2014 gas was down 0.32 pence at 58.60 pence per therm.
Gas for immediate delivery, however, rose by 0.60 pence to 36.60 pence per therm.
This was because demand was actually slightly higher than the seasonal norm on Monday morning, traders said.
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