LONDON: British wholesale gas prices fell on Thursday, despite freezing weather across the country, as the temperatures are forecast to rise in the coming days reducing demand for gas for heating.
Day-ahead gas price fell 2.25 pence to 57.25 pence per therm by 0845 GMT
Within-day gas price was yet to trade
The gas system was 12.6 million cubic metres (mcm) oversupplied, with demand forecast at 367.7 and supply seen at 380.3 mcm, according to National Grid data
Average temperatures in Britain are forecast at 1.0 degrees Celsius on Thursday, a rise of 0.9 degrees
But for Friday, the forecast has been increased by 4.9 degrees Celsius to 5.9 degrees on average, according to Refinitiv Eikon weather data
The higher temperature for Friday has led to a 42 mcm reduction in local gas demand expectation to 224 mcm from 268 mcm on Thursday
Gas for power, at 93 mcm on Thursday, is expected to fall to 71 mcm the following day as peak wind generation is seen jumping to 9.2 gigawatts (GW) from 2.7 GW on Thursday
Wind power tends to reduce demand for gas used in power stations
Gas supplies from Norway, Britain's offshore and along the BBL pipeline from the continent remained steady from Wednesday
There are two outages that continue to impact flows from UK production
A compressor issue at the Bacton SEAL terminal, on the east coast of England, is expected to be resolved later on Thursday or early Friday, a REMIT notice said
LNG send-out is expected to fall 16 mcm to 54 mcm although this level is still high compared to most of last year and two tankers are expected to dock by Monday
Prices fell further along the curve with the February contract down 1.45 pence to 58.45 p/therm
The day-ahead gas price at the Dutch TTF hub fell 0.35 euro at 21.60 euros per megawatt hour
Benchmark Dec-19 EU carbon contract was down 0.42 euro to 24.30 euros per tonne.
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