LONDON: Prompt natural gas edged lower in Britain on Wednesday morning as warm weather forecasts led to reduced demand for gas for heating and from power generators.
Prices for within-day delivery were trading at 53.75 pence per therm at 1013 GMT, down 0.10 pence since their last settlement.
With supply flows at about 258.9 million cubic metres (mcm) per day on Wednesday and demand expected to be about 251.8 mcm, the system was 7.1 mcm oversupplied, National Grid data showed.
Wednesday's gas demand was around 12 percent below the seasonal norm of 288 mcm, the data showed.
"The outlook is for generally warmer weather, meaning residential and commercial demand should be lighter for most of the week," analysts at Energy Aspects said in a research note published on Tuesday.
A forecast from Britain's Met Office showed temperatures were likely to reach 12 degrees on Wednesday and up to 13 degrees on Thursday, compared with average temperatures of around 7 degrees in December.
Further along the curve, the first-quarter 2015 gas contract was 0.97 pence higher at 54.80 pence per therm.
In the Netherlands, the day-ahead gas price at the TTF hub was 0.25 euros higher at 22.73 euros per megawatt-hour (MWh).
The benchmark European Union carbon price rose 0.11 euros to 7.11 euros a tonne on ICE Futures Europe.
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