LONDON: Prompt natural gas prices in Britain slipped on Thursday, trimming recent gains, as milder weather meant demand for gas for heating was lower.
Prices for next-day delivery eased to 58.15 pence per therm at 0931 GMT, down 0.85 pence from the previous settlement, breaking their recent uptrend. The contract had risen by over 3 percent in the first three days of the week.
Earlier this week temperatures briefly dipped below normal levels for this time of year but are expected to hold above normal for the remainder of the week.
"We had an over-reaction to colder weather," a gas and power trader said.
"Now weather is coming back closer to normal there won't be any reason to have higher prices."
The UK gas system was 22 million cubic metres oversupplied, with flows were expected to be 287 mcm/day, while demand was 265 mcm, National Grid data showed.
An outage at Britain's SAGE natural gas processing terminal has ended, ConocoPhillips said.
Gas flows from Norway's Langeled pipeline remained near capacity at 70 mcm, while flows from the UK Continental Shelf (UKCS) and the Netherlands via the BBL pipeline were higher than on Wednesday.
"BBL flows are up on yesterday and would be bearish for tomorrow if they remain at this level amid falling consumption," Thomson Reuters Point Carbon analysts said.
Day-ahead TTF gas was down 0.26 euros at 24.42 euros per megawatt hour.
Intercontinental Exchange said on Wednesday that ICE Endex achieved a record daily volume in TTF Natural Gas futures with 27,569 contracts traded on Nov. 25.
In Europe's carbon market, benchmark EU Allowances (EUA) were down 0.06 euro at 7.13 euros per tonne.
Comments
Comments are closed for this article.