* Prompt prices up despite mild weather, oversupply
* Currency weakness, carbon gain support curve, prompt
* LNG tanker arrives in UK port
Dec 21 British wholesale prompt gas prices
reversed earlier losses to trade higher on Wednesday, supported
by firmer near-curve contracts on the back of a weakening pound
against the euro and on rising carbon prices.
The price of gas for immediate delivery rose by
0.10 pence to 45.50 pence per therm by 0946 GMT.
The day-ahead contract also added 0.05 pence to
45.60 pence per therm in response to higher estimated heating
demand for Thursday.
"Prompt contracts opened the session lower in line with
comfortable supplies and a slight increase in expected
temperatures for the coming weeks, though support from gains on
the front month has reversed some of these moves," according to
Andrew Crabtree, pricing and risk analyst at Wingas UK.
Gas for January delivery traded 0.05 pence
higher at 46.25 pence per therm, lifted by sterling currency
weakness and rising carbon prices, Crabtree said.
In the European carbon market, the benchmark Dec 17 contract
firmed by 0.13 euro to 5.38 euros a tonne.
Trading liquidity was especially poor, which may have also
helped influence some of the moves.
"You can tell from the trading liquidity in the market that
a lot of people are already off," one trader said in reference
to the upcoming Christmas holiday season.
Britain's gas market was oversupplied by 14.3 mcm/day with
daily demand estimated at 292.2 mcm/day, according to National
Resuming production from Centrica's Barrow North gas
terminal, fed by fields in the Irish Sea, is contributing around
7 mcm/day extra gas into the grid.
An unplanned outage saw Barrow idled on Dec. 19.
France's Engie started production at the Cygnus
field offshore the UK last week, and supplies continue to
ramp-up, analysts said.
Liquefied natural gas (LNG) tanker the Aamira arrived at the
UK's port of South Hook but there are no further incoming
shipments listed, according to shipping data.
Temperatures across the UK on Wednesday hovered at around
6.8 degrees Celsius, several degrees above earlier expectations.
Thursday however will bring colder weather with forecasters
predicting an up to 2.7 degrees Celsius drop versus expectations
to around 4.5 degrees Celsius.
Flows from Norway through the Langeled pipeline are
currently at around 74 mcm and are forecast to stay close to
this level this week, Thomson Reuters analysts said.
In the Netherlands, gas for day-ahead delivery at the TTF
hub was up 0.07 euro at 17.80 euros per
(Reporting by Oleg Vukmanovic, editing by Jeremy Gaunt)