September 20, 2019 / 9:09 AM / a month ago

UK GAS-Prompt prices slip as strong wind power curbs demand

LONDON, Sept 20 (Reuters) - British wholesale gas prices mostly fell on Friday morning as strong output from the country’s wind farms curbed demand for other fuels, leaving the market oversupplied.

* The day-ahead contract was down 0.70 pence at 24.00 p/therm by 0850 GMT.

* The within-day contract was down 2.30 p at 23.00 p/therm

* The weekend contract was down 1.00 p at 23.00 p/therm.

* “Low gas for power demand is the main generator of physical oversupply,” analysts at Refinitiv said in a daily research note.

* Britain’s gas system was oversupplied by 5.4 million cubic metres (mcm) with demand forecast at 154.1 mcm and flows at 159.5 mcm/day, National Grid data showed.

* Peak wind power generation is forecast at 8.1 gigawatts (GW) on Friday, rising to almost 9.6 GW on Saturday, Exelon data showed.

* Traders said an end to a strike by French nuclear power workers on Thursday evening was also bearish for the market.

* France is a net power exporter in Europe, meaning there may be a need for more gas across the continent to replace some French power imports.

* The French unions have threatened to hold another strike on October 10.

* October contract up 0.15 p at 32.70 p/therm.

* Day-ahead gas price at the Dutch TTF hub down 0.70 euros at 8.60 euros per megawatt hour.

* Benchmark Dec-19 EU carbon contract up 0.40 euros at 26.39 euros per tonne. (Reporting by Susanna Twidale; Editing by Jan Harvey)

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