March 13, 2018 / 9:48 AM / 6 months ago

UK GAS-Prices fall on mild weather and strong wind

March 13 (Reuters) - British wholesale gas prices fell on Tuesday, correcting gains made the previous day, and as mild temperatures and strong wind curbed gas demand.

* Day-ahead gas fell by 3.40 pence to 66.10 pence per therm at 0915 GMT.

* Within-day gas was down 7.00 pence at 65.00 p/therm.

* “I was frankly surprised by the reaction yesterday as I expected people were long from the weekend, so I take this as correction,” said a British gas trader.

* Mild and windy weather had also curbed demand, said another trader.

* There are forecasts for colder temperatures later in March but they have already been priced in by the market, he added.

* Average daily temperatures in Britain are seen at around 6.5 degrees Celsius today and tomorrow, but are forecast to fall to around 1 degree C at the weekend, Thomson Reuters Eikon data shows.

* Peak wind power generation is forecast at 4.5 gigawatt (GW) on Tuesday and is expected to rise to 10.3 GW on Wednesday, Elexon data shows.

* Stronger wind output typically results in lower demand for gas from power plants.

* UK gas demand stood at 320.3 mcm, 36.7 mcm higher than the seaonal norm. Flows were forecast at 324.8 mcm/day, meaning the system was oversupplied by 4.5 mcm.

* Britain received a liquefied natural gas (LNG) vessel from Russia on Tuesday, and another is expected to arrive later this month.

* The April contract fell by 1.12 pence to 52.45 pence/therm.

* Day-ahead gas at the Dutch TTF hub was down 2.50 euros at 23.85 euros per megawatt-hour.

* The benchmark Dec-18 EU carbon contract was down 0.10 euro at 10.98 euros a tonne.

* Thomson Reuters analyst view: here (Reporting by Lefteris Karagiannopoulos in Oslo; editing by Nina Chestney)

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