March 14, 2018 / 9:40 AM / 5 months ago

UK GAS-Prices fall on firm Norwegian supplies, mild weather

LONDON, March 14 (Reuters) - British wholesale gas prices fell on Wednesday on strong supplies from Norway and warmer weather expected later in the month following cold snap two weeks ago.

* Day-ahead gas fell by 2.35 pence to 64.00 pence per therm at 0915 GMT

* Within-day gas was down 2.50 pence at 64.00 p/therm

* Weather models were showing milder temperatures for the week ahead compared to previous forecasts and wind output was expected to increase, which reduces demand from gas plants, a trader said

* Thomson Reuters Eikon weather data shows a rise of around 1 degree Celsius in temperature on Wednesday from the previous day’s forecast.

* Milder temperatures are forecast towards the end of the month, said Dimitrios Saratzis, Thomson Reuters gas analyst.

* The British market was oversupplied by 17.5 million cubic metres (mcm) on Wednesday, with demand forecast at 287 mcm and flows at 304.5 mcm.

* On the supply side, imports of Norwegian gas rose by 6-7 mcm to 135 mcm compared to Tuesday

* Gas storage injections have increased, adding to the oversupply picture

* The Dimlington gas terminal suffered an unplanned outage on Tuesday. Operator Perenco said it was investigating the issue but did not disclose an estimated end date.

* “The outage at Dimlington might be of concern, but (storage) injected heavily yesterday, will most likely inject strong today,” Thomson Reuters gas analysts said in a daily note.

* The April contract fell by 1.13 pence to 51.00 pence/therm.

* Day-ahead gas at the Dutch TTF hub was down 1.15 euro at 23.85 euros per megawatt-hour.

* The benchmark Dec-18 EU carbon contract was down 0.10 euro at 11.30 euros a tonne.

* Thomson Reuters analyst view: here (Reporting by Sabina Zawadzki; editing by Nina Chestney)

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