LONDON: Prompt natural gas prices in Britain fell on Wednesday as milder weather curbed consumption and supply outpaced demand.
UK gas for day-ahead delivery was 0.60 pence lower at 49.00 pence per therm at 0951 GMT, while gas for within-day delivery fell 1.15 pence to 48.95 pence per therm.
With supply flows at about 279.2 million cubic metres (mcm) per day on Wednesday and demand expected to be about 273.6 mcm, the system was 5.6 mcm oversupplied, National Grid data showed.
Wednesdays demand was down 2 percent on the seasonal norm of 280 mcm as warmer weather dented demand for gas for heating. Forecasts from Britain's Met Office show temperatures could hit 6 degrees on Wednesday and 10 degrees on Thursday, up from levels below -1 at the beginning of the week.
Expectations of high power output from the country's wind and nuclear power generators also led to weak demand from gas-fired power generators.
Wind generation was forecast at around 5.6 gigawatts (GW) on Wednesday and 6.8 GW on Thursday, up from levels below 3 GW earlier in the week, National Grid data showed.
Meanwhile nuclear power plants were providing around 8 GW on Wednesday morning, 22 percent of the country's total electricity consumption, the data showed.
The January gas contract was 0.45 pence lower at 49.90 pence per therm.
The benchmark European Union carbon price rose 0.04 euros to 7.34 euros a tonne on ICE Futures Europe.
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