Curve gas hits 100 pence on high oil

LONDON (Reuters) - Expensive oil pushed gas for this winter to a record 100 pence per therm on Monday and long-term power prices also rose strongly, while prompt electricity drew initial support from a warning spare capacity was too tight.

U.S. crude leapt nearly $11 a barrel to a new record above $139 a barrel on Friday and was still around $137 a barrel on Monday.

That had knock-on effects for long-term gas contracts, which can be priced off oil products and long-term power, often generated from gas.

Winter 2008 gas hit a peak of 101 pence a therm in early trade before easing slightly to 100 pence per them, up four pence from Friday's close.

Summer 2009 gas also gained 3.25 pence to 86 pence per therm and Summer 2009 power rose by 3.67 pounds per megawatt hour to 78.36 pounds.

"Onwards and upwards," one trader said. "It's still looking very, very strong."

Prompt power also rose to 95.50 pounds per megawatt hour for the day-ahead contract after a brief warning, later cancelled, from the National Grid that spare capacity could be too tight.

A spokeswoman said there had been concern about a possible shortfall, but extra generation had come onstream and the systems warning had been lifted.

In late trade on Friday, day-ahead had ended at around 89.50 pounds, brokers said.