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UK gas: Prices fall on oversupply, lower demand expectations

LONDON (Reuters) - British wholesale gas prices fell on Thursday morning, amid a weaker energy complex, weighed by higher supply and expectations of lower demand.

- The day-ahead contract <TRGBNBPD1> was 0.60 pence lower at 24.00 pence per therm by 0900 GMT.

- The within-day contract <TRGBNBPWKD> fell by 1.25 pence to 23.25 p/therm.

- "Supply is strong and demand is down," a gas trader said, adding that concern over the impact of the coronavirus on industrial output and demand was also weighing on prices.

- The system was oversupplied by around 14 million cubic metres (mcm), with demand forecast at nearly 269 mcm and flows at 283 mcm/day, National Grid data shows.

- Flows through the Langeled pipeline from Norway and liquefied natural gas send-out are higher than the previous day.

- Average temperatures are forecast to increase from Friday which could lower demand for heating.

- Strong winds are also expected to receede which will raise gas-for-power demand.

- Peak wind generation is expected to be nearly 13.6 gigawatts (GW) on Thursday and 12.3 GW on Friday, out of a total metered capacity of 15.3 GW, Elexon data shows.

- The April gas contract <TRGBNBPMJ0> decreased by 0.98 pence to 23.17 p/therm.

- Oil prices fell for the second straight day on Thursday amid a broad decline in global markets after the United States banned travel from Europe following the World Health Organization's decision to declare the coronavirus outbreak a pandemic. [O/R]

- In the Dutch gas market, the April contract <TRNLTTFMc1> was 0.25 euro lower at 9.13 euros per megawatt hour.

- The benchmark Dec-20 EU carbon contract <CFI2Zc1> fell by 1.01 euro to 22.91 euros a tonne.

(Reporting by Nina Chestney)