LONDON: British wholesale gas prices edged lower on Wednesday morning due to an oversupplied system and lower demand.
Day-day gas price was down 0.35 pence at 29.90 p/therm at 0933 GMT.
Gas for immediate delivery inched down by 0.35 pence to 30.00 p/therm.
"Demand isn't really there with warmer weather the rest of this week and wind (output) is going up," a gas trader said.
The gas system was around 7 million cubic meters (mcm) oversupplied, with demand forecast at nearly 203 mcm and supply at 210 mcm/day, National Grid data shows.
Temperatures on Thursday have been revised to be 4.1 degrees Celsius higher than previously, Refintiv Eikon data shows.
However, the average forecast across the next 15 days is 0.3C lower than before.
Local distribution zone consumption is 9 mcm lower than the previous day.
Wind generation is forecast to increase to 7.4 gigawatts (GW) on Thursday from 6.4 GW on Wednesday, Elexon data shows, which will potentially reduce gas demand from power plants.
On the supply side, flows from Norway via the Langeled pipeline are expected to be 5 mcm lower than on Tuesday.
There are a number of outages at Norwegian gas fields restricting flows now and throughout June.
From Monday, there is also maintenance at UK gas field Cygnus.
Liquefied natural gas send-out in Britain was forecast to drop by around 9 mcm to 56 mcm on Wednesday, but on the continent LNG send-out has increased.
The June contract was up 0.12 pence at 30.50 pence/therm.
Day-ahead gas price at the Dutch TTF hub inched down by 0.15 euro to 12.35 euros per megawatt hour (MWh).
The fall is ahead of a holiday in many European countries on Thursday and warmer weather, another trader said.
Benchmark Dec-19 EU carbon contract was 0.32 euro higher at 25.80 euros a tonne.
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