LONDON, July 4 (Reuters) - British spot gas prices pared
back gains on Thursday as warm weather curbed demand, leaving
the system oversupplied.
Gas for Friday delivery was trading 0.60 pence
lower at 64.55 pence per therm at 0737 GMT. Prices had been
gaining ground over the past couple of weeks.
'The system opened long this morning, which is a bearish
factor for (the within-day) contract and may pull down other NBP
prompt prices,' Point Carbon analysts said.
Oversupply was due to lower consumption, higher Norwegian
exports as production at the Kollsnes gas processing plant
resumed after a power failure and lower IUK pipeline exports,
The British gas system was oversupplied by 6.4 million cubic
metres (mcm) on Thursday, National Grid data showed.
Gas demand on Thursday was forecast at 156.4 mcm, below the
seasonal norm of 206.8 mcm, as warm weather curbed central
heating demand in many parts of the country.
Temperatures were expected to remain above 21 degrees
Celsius for the remainder of the week, according to Britain's
Met Office, with highs of 27 degrees on Sunday.
It forecast 'a good deal of fine, dry and increasingly warm
weather' over the next five-day period.
Conditions should remain fine, dry and settled across
Britain over the next fortnight, it added.
'With LNG send outs from South Hook and BBL remaining
reduced since July 1, the UK system needs medium-range storages
to balance dampening the downward price movement,' Point Carbon
On the power side, day-ahead baseload power fell
1.22 pounds to 47.13 pounds per megawatt hour.
EDF Energy restarted unit 8 at its Heysham nuclear
power plant in the early hours of Thursday, after an unplanned
outage, the company said.
(Reporting by Nina Chestney; editing by James Jukwey)
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UK natural gas prices
National Grid instant flows
National Grid gas demand
North Sea gas and power maintenance
UK: baseload prices, peakload prices,
FRANCE: baseload prices, peakload prices, outages, report
GERMANY: baseload prices, peakload prices, outages, report
CENTRAL EUROPE: report
SWITZERLAND: outages, reservoir levels
EU CARBON PRICES SPEEDGUIDE:
Keywords: MARKETS BRITAIN GAS/POWER
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