LONDON: British prompt gas prices made gains on Thursday morning after a rapid rise in exports to Europe spurred demand to exceed supplies.
Day-ahead gas rose 1.25 pence to 49 pence per therm after exports to Europe via the Britain-Belgium Interconnector reached 50 million cubic meters/day (mcm/day).
Gas prices in Belgium traded at a 6.25 pence per them premium over the corresponding UK contract, encouraging flows of gas from cheaper to more expensive markets.
Gas for immediate delivery gained 1.10 pence to 49 pence per therm as the system turned 5 mcm/day short of gas.
Network manager National Grid pegged demand about 11 percent below seasonal norms at 225 mcm/day, but it remained at high levels compared with earlier this week.
October gas moved one-quarter penny higher at 58.45 pence. Incoming month-ahead November gas extended gains further, up 0.65 pence to 70 pence on the day.
The liquefied natural gas (LNG) supply outlook looked stable, with some traders citing caution over winter shipments amid fears Qatar will redirect volumes eastward to higher paying Asia.
The benchmark winter 2011/12 gas contract rose about 0.15 pence to 72 pence, lifting it closer to its key 50 exponential daily moving average technical support level of 72.20 pence.
Rising crude oil prices helped support gains on the gas curve. Brent crude oil rose more than $1 as the dollar eased and confidence grew that European leaders would organize an effective solution to the euro zone debt crisis.
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