UK GAS-Prices dip as Norwegian imports rise, oil prices decline

LONDON: Prompt British wholesale gas prices fell on Monday morning as higher imports from Norway weighed on prompt prices while curve contracts followed oil prices lower.

The day-ahead contract was down 0.10 pence at 12.80 p/therm.

Traders said the system was fairly balanced on Monday but higher Norwegian imports and slightly cooler weather reducing electricity demand for air conditioning led prices to tick lower.

"The system seems fairly balanced, but we have increased Langeled flows (up 11 mcm) and weather seems cooler (so less cooling demand)," a gas trader said,

Imports from Norway through the Langeled pipeline were nominated at 36 mcm, up from around 25 mcm on Friday, Refinitiv Eikon data showed.

Britain's gas system was almost balanced with demand forecast at 175.5 mcm and flows at 177.7 mcm/day, National Grid data showed.

Further out on the curve, traders said prices were dragged lower by weaker oil.

The August contract was down 0.65p at12.85p/therm.

The Winter 2020, contract was down 0.45 p at 32.90 p/therm.

Oil prices dropped on Monday, amid concerns that a recovery in fuel demand could be derailed by a rise in the pace of coronavirus infections around the world.

The day-ahead gas price at the Dutch TTF hub was down 0.46 euro at 4.69 euros per megawatt hour.

The benchmark Dec-20 EU carbon contract was down 0.78 at euro at 27.04 euros per tonne.