LONDON: Prompt wholesale British gas prices edged lower on Wednesday morning due to reduced demand and oversupply.
* Day-ahead gas was down 0.20 pence at 46.55 p/therm at 0841 GMT, near its lowest since Oct. 2017.
* Gas for March delivery edged down by 0.10 pence to 46.50 p/therm.
* Milder temperatures have reduced gas demand for heating and the system is slightly oversupplied.
* Demand is forecast at around 273 million cubic metres (mcm) and flows at 283 mcm/day, National Grid data shows.
* Flows from Norway are slightly lower but liquefied natural gas (LNG) supply and UK domestic production are stable.
* Analysts at Fitch Solutions expect European gas prices to stabilise through this course of this year. A reversal in Europe-Asia LNG flows and a wider increase in global LNG supply will see more LNG cargoes enter Europe, putting pressure on gas prices.
* They forecast average UK gas prices at 55 pence per therm in 2019 and 50 pence in 2020.
* Day-ahead gas price at the Dutch TTF hub was flat at 17.45 euros per megawatt hour.
* The benchmark Dec-19 EU carbon contract was down 0.42 euro at 20.28 euros a tonne.
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