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Prompt prices firm as temperatures set to drop

Published 31/12/2015, 09:17
Updated 31/12/2015, 09:30
© Reuters. File photogrpah shows a gas cooker in Boroughbridge

LONDON (Reuters) - Prompt British gas prices were firm on Thursday as cooler temperatures over the coming days were expected to push up demand for gas for heating in the short term.

Gas for day-ahead delivery was up 0.15 pence at 32.70 pence per therm (p/therm) by 0854 GMT, while prices further along the curve eased.

"There is no cold snap in the horizon except for the few days right after New Year," Thomson Reuters Point Carbon analysts said.

The Met Office forecast temperatures in line with seasonal norms for Friday at around 5 degrees Celsius, cooler than the mild weather seen in recent weeks.

The system was 3 million cubic metres (mcm) oversupplied, with demand forecast at 246 mcm, National Grid (L:NG) data showed.

Norwegian exports remained strong with flows via the Langeled pipeline to Britain at around 61 mcm per day, in line with the previous day.

Norway's pipeline gas exports to Europe hit an annual record high of 107.9 billion cubic metres as of Dec. 29, due to higher output at its key gas field Troll, preliminary data from gas system operator Gassco showed.

February gas prices fell 0.65 p/therm to 33.40 p/therm, while the benchmark summer 2016 price traded down 0.4 p/therm at 31.00 p/therm.

In the Netherlands, the day-ahead gas price at the TTF hub was 0.05 euro higher at 14.35 euros per megawatt hour on Thursday.

In Europe's carbon market, the benchmark EU Allowance (EUA) (CFI2Z6) edged up 0.01 euro to 8.29 euros a tonne.

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