UK GAS-Edges up on rise in Europe gas, other commodities

LONDON: British prompt wholesale gas prices edged up on Thursday, supported by movements in gas prices in Europe, and global commodity and stock markets.

The day-ahead contract was up 0.40 pence at 13.20 p/therm by 1010 GMT.

The August contract rose by 0.40 pence to 13.60 pence/therm.

A gas trader said the upward move could be linked to developments in continental Europe, where maintenance activity at a border point between Slovakia and Ukraine was postponed to September from August, leaving traders enough time to flow gas from Europe to Ukraine for storage purposes.

Another trader said the low prices across Europe could be attracting some buyers.

UK gas system was 14.3 million cubic metres (mcm) oversupplied, with demand forecast at 163.2 and supply at 177.5 mcm, National Grid data showed.

Flows from Norway via the Langeled pipeline rose by 5 mcm day on day to 55 mcm on Thursday, Gassco data showed.

Peak wind generation was expected to increase to 4.6 gigawatts (GW) on Friday from 3.6 GW on Thursday, Elexon data showed.

"System opened long once more with Langeled flows again ramping up...renewable outlook for tomorrow is bearish," Refinitiv analysts said in a morning note.

Further out on the curve prices were supported by cancellations of US LNG cargoes for September loading, meaning less US LNG will be delivered to Europe this autumn.

UK September gas contract was up 0.63 pence at 14.93 pence/therm.

The August gas price at the Dutch TTF hub was up 0.23 euro at 5.14 euros per megawatt hour.

The benchmark Dec-20 EU carbon contract was up 0.48 at euro at 27.11 euros per tonne.

Oil prices rose on Thursday on the back of a weaker dollar.