UK GAS-Prices rise on higher demand

06 Nov, 2017

Day-ahead gas was up 0.50 pence at 49.80 p/therm and December gas was up 1.15 p at 52.15 p/therm.

"Consumption is up due to colder weather," a UK gas trader said.

Temperatures are forecast to be a few degrees lower than last week as more wintry weather sets in.

UK Met Office forecasts show a day-time range of 9-13 degrees Celsius this week in southern England.

Despite higher demand for heating, the gas system is around 8 million cubic metres (mcm) oversupplied, with flows forecast at 283 mcm/day and demand at around 271 mcm, National Grid data shows.

There are healthy supplies from UK domestic production and Norway.

In the Dutch gas market, the day-ahead gas price at the TTF hub was 0.30 euro higher at 18.60 euros per megawatt hour.

The benchmark Dec-17 EU carbon contract inched up by 0.03 euro to 7.91 euros a tonne. * Thomson

Copyright Reuters, 2017

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