UK GAS-Prices rise on colder weather outlook, stronger oil
* Temperatures seen falling towards the weekend
* North-Morecambe, Theddlethorpe terminals remain shut
Oct (HKSE: 3366-OL.HK - news) 5 (Reuters) - British wholesale gas prices rose on Monday on expectations that colder weather will boost demand and stronger oil prices, while two of the country's gas terminals remained shut due to outages.
Gas for instant delivery was trading at 39.30 pence per therm by 0830 GMT, up 1 pence from the previous session, while prices for Tuesday rose 1.10 pence to 39.30 pence per therm.
With daily demand pegged at 227 million cubic metres (mcm) per day, 19.5 percent above normal, Britain's gas market was undersupplied by 2 mcm, according to National Grid (LSE: NG.L - news) .
"A change in temperature outlook to below seasonal normal levels with a corresponding rise in LDZ (households) consumption has seen prices across the prompt to firm," a UK gas trader said.
Temperatures in Britain are seen falling towards the end of this week to below normal levels, with night temperatures in London dropping to 9-10 degrees from 16 degrees on Monday, UK's Met Office said.
On the supply side, gas processing terminals at North Morecambe sub-terminal and Theddlethorpe remained shut due to outages and their restart dates were unknown.
Supply from LNG import terminals, however, remained at a healthy 45 mcm/day, and pipeline imports from Norway were steady.
Gas prices further out on the curve were lifted by stronger oil prices, traders said.
Front-month November gas prices were up 0.52 pence at 41.65 pence/therm, while prices for summer 2016 were up 0.30 pence at 38.35 pence/therm.
Oil rose on news Russia is ready to meet other oil producers to discuss the supply glut, while the number of oil rigs drilling in the United States continued to fall.
In the Netherlands, the day-ahead gas price at the TTF hub was up 0.35 euros at 18.05 euros per megawatt-hour.
In Europe's carbon market, the benchmark EU Allowance (EUA) firmed by 0.06 euros to 8.21 euros a tonne. (Reporting by Nerijus Adomaitis in Oslo; editing by David Clarke (Toronto: CKI.TO - news) )