LONDON (Reuters) - British wholesale gas prices reversed earlier losses on Monday, as low temperatures boosted demand for heating.
Gas for immediate delivery was 1 pence higher at 57.00 pence per therm at 1157 GMT, having hit an intra-day low of 55.80 p/therm earlier. The day-ahead contract was up 0.15 p at 56.65 p/therm.
Since the start of January, the two prompt contracts have gained ground due to increased demand amid colder temperatures.
Demand was forecast at 367 million cubic metres (mcm) on Monday, 65 mcm above the seasonal norm.
Temperatures are forecast between -1 and 4 degrees Celsius in southern England from Monday to Wednesday, before edging up a couple of degrees from Thursday into the weekend, the Met Office website shows.
An eastern jet stream is causing cold temperatures across Europe, averaging around 2.3 degrees Celsius below normal, said Thomson Reuters analyst Dean Hunt.
Traders said prices had softened in early trade due to oversupply. However the very low temperatures and high consumption had prompted more buying through the morning.
The British gas system was oversupplied by around 10 mcm on Monday, as Norwegian supply was strong.
Further along the curve, the February contract was 1.34 pence higher at 56.90 p/therm.
In the Netherlands, the day-ahead gas price at the TTF hub was 0.75 euro higher at 21.50 euros per megawatt hour.
In the European carbon market the benchmark Dec-17 contract moved up by 0.10 euro to 5.53 euros a tonne.