LONDON: Prompt British wholesale gas prices rose on Wednesday morning on lower forecasts for wind power production and cooler temperatures.
* Day-ahead gas price up 0.60 pence at 65.20 pence per therm by 0904 GMT.
* Within-day gas price up 0.60 pence at 65.00p/therm.
* Traders cited expectations of strong demand from power plants as output from the country's wind farms slipped.
* Traders also said colder temperatures than previously forecast had buoyed demand.
* Peak wind power generation is forecast at 7.4 gigawatts on Wednesday, down from highs of 11.5 GW the previous day, National Grid data showed.
* Refinitiv analysts increased their expectations of gas for power demand by 4 million cubic metres due to lower wind speeds, they said in a daily research note.
* Gas system almost balanced with demand forecast at 274.9 mcm/day and flows at 281.8 mcm/day, National Grid data showed.
* Average temperatures in Britain were forecast at 6.6 degrees Celsius, Eikon Refinitiv data showed, a drop of 2.1 degrees compared with the previous forecast.
* "After a warm spell over the next few days we expect the temperatures adjusting down closer to normal mid next week," the analysts wrote.
* Around 80 percent of Britain's homes are heated using natural gas, meaning temperatures can have a big impact on demand.
Comments
Comments are closed.