LONDON: British gas prices rose across the board on Wednesday as temperatures were expected to drop and lift demand, while Norway, Britain's largest foreign gas supplier, said it could miss its 2012 oil and gas production target.
Prompt gas prices ticked slightly higher on the back of colder weather forecasts, but healthy supply levels provided plenty of gas to cover demand and put a cap on gains.
Gas for day-ahead delivery traded up 0.20 pence at 63.45 pence per therm at 0830 GMT.
"People are worrying about the end of the (weather) forecast looking below normal," a gas trader said, referring to lower temperature forecasts for next week, but adding that strong supply should lower prices later in the session.
November-January gas prices also rose, with the front-month adding 0.80 pence to 64.55 pence and December gaining 0.60 pence to 66.05 pence.
The Norwegian Petroleum Directorate predicted on Wednesday the country could miss its 2012 oil and gas production goals, after technical problems and planned maintenance dragged output in September lower than expected.
Norway was Britain's largest gas exporter in 2011 and recent unexpected production cuts in the Norwegian part of the North Sea lifted UK gas prices as traders grew nervous about supply cuts during the peak winter demand period.
Further out, contracts also rose as steady oil prices led gains and strength from the prompt supported futures.
The benchmark front-season gas price added 0.45 pence to 61.95 pence per therm, while winter 2013 gas traded at 70.45 pence, also up 0.45 pence.
In Britain's over-the-counter (OTC) power market prices also rose as it became more expensive to burn gas in power plants and the planned restart of one of EDF Energy's nuclear reactors failed to counter the impact.
Day-ahead power prices rose 1.40 pounds to 47.50 pounds per megawatt-hour.
The 460-MW Hunterston B-7 nuclear unit restarted as planned on Tuesday from a statutory outage that began in mid-August.
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