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UK GAS-Prompt prices edge higher on lower wind power forecasts
April 7, 2017 / 9:36 AM / 7 months ago

UK GAS-Prompt prices edge higher on lower wind power forecasts

LONDON, April 7 (Reuters) - British wholesale prompt gas prices edged higher on Friday morning on forecasts of low output from the country's wind farms and cooler temperatures, while forward contracts found support from strong crude oil prices. * British day-ahead gas price up by 0.35 pence to 40.55 pence per therm at 0916 GMT. * The within-day contract was up by 0.10 pence to 40.60 p/therm. * Traders said prompt prices were lifted by strong demand from gas-fired power stations, with electricity from the country's wind farms forecast to be low over the coming days, while temperatures are also expected to drop after the weekend. * Britain's Met Offices forecast temperatures could reach as high as 22 degrees Celsius in the southeast of the country over the weekend but are expected to fall to around 13 degrees by Monday. * Peak wind power output forecast at 2.2 gigawatts (GW) for Friday, falling to 1.8 GW on Saturday compared with total capacity of around 10 GW, National Grid data showed. * Gas demand, at 260.1 million cubic meters (mcm) was 10 percent higher than the seasonal norm of 237 mcm, National Grid data showed. * System almost balanced with demand forecast at 260.1 million cubic meters (mcm), and flows at 263.1 mcm/day, National Grid data shows. * Imports from Norway still reduced due to an unplanned outage at Norway's Kvitebjørn gas field which has cut supplies by around 10.7 mcm. * Brent crude futures surged to a one-month high over $56 a barrel after the United States launched air strikes on a Syrian government airbase. * May gas contract <TRGBNBPMK7 > up by 0.90 pence to 40.80 p/therm. * Winter 2017 contract up by 0.40 pence to 47.20 p/therm. * Day-ahead gas price at the Dutch TTF hub up by 0.22 euro to 16.20 euros per megawatt hour. * Benchmark Dec-17 EU carbon contract up by 0.04 euro to 5.10 euros per tonne. * Thomson Reuters analyst view: here (Reporting By Susanna Twidale; Editing by Edmund Blair)

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