LONDON: Prompt natural gas prices in Britain edged lower on Tuesday, as supply flows offset rising heating demand triggered by a drop in temperatures.
Prices for next-day delivery eased to 57.50 pence per therm at 0907 GMT, down 0.1 pence from the previous settlement.
Temperatures on Tuesday are expected to drop below normal levels for this time of year and remain so for the rest of the week. However, flows look set to meet any increase in demand.
The UK gas system was 12 million cubic metres oversupplied, with flows expected to be 293 mcm/day, while demand was 281 mcm, National Grid data showed.
This is around 20 mcm higher than Monday's demand and is above seasonal demand for this time of year, which is pegged at 275 mcm.
Gas flows from Norway's Langeled pipeline were expected at full capacity at 71 mcm.
"Going forward we maintain high Langeled flows but factor in the risk that the Continent can call on higher volumes if needed," Thomson Reuters Point Carbon analysts said.
Centrica's UK Rough gas storage facility began an unplanned withdrawal outage on Tuesday which reduced withdrawal capacity by 10 million cubic metres a day.
"We continue to stick to our outlook that storage withdrawals will pick up next week as consumption rises, with withdrawals from Rough climbing to a steady level around 30 mcm/d from this Thursday onward," the analysts said.
Day-ahead TTF gas was down 0.1 euros at 23.85 euros per megawatt hour.
In Europe's carbon market, benchmark EU Allowances (EUA) were up 0.04 euro at 7.11 euros per tonne.
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