Prompt prices rise with temperatures, wind output set to dip

22 Jan, 2019

* Day-ahead gas price up 0.67 pence at 59.25 pence per therm by 0825 GMT.

* Within-day gas price up 0.65 pence at 58.25 p/therm.

* Traders said colder than previously expected short-term forecasts helped lift prices.

* Average temperatures in Britain were forecast at 2.7 degrees Celsius, dropping to -0.1 degree on Wednesday according to Eikon Refinitiv weather data.

* Wednesday's forecast was 2.8 degrees lower than previously expected, the data showed.

* Refinitiv analysts forecast local distribution zone gas demand, which is primarily for home heating, at 260 million cubic metres/day (mcm/d), rising to 277 mcm/d on Wednesday.

* Demand from gas-fired power stations was also expected to rise as electricity output from wind farms drops on Wednesday to 2.9 gigawatts (GW) from 7.9 GW on Tuesday, National Grid data showed.

* Traders said the rise in prices was limited by strong gas supplies.

* Gas system oversupplied by 23.9 mcm with demand forecast at 369.3 mcm and flows at 393.2 mcm/day, National Grid data showed.

* February contract up 0.05 p at 59.35 p/therm.

* Day-ahead gas price at the Dutch TTF hub down 0.10 euro at 21.70 euros per megawatt hour.

* Benchmark Dec-19 EU carbon contract up 0.11 euro at 24.57 euros per tonne.

Copyright Reuters, 2019

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