UK GAS-UK prompt prices edge higher on heating demand
* Prompt prices rise on higher demand
* System oversupplied, domestic output strong
Feb 11 (Reuters) - British prompt wholesale natural gas prices edged higher on Thursday as colder temperatures pushed heating demand higher, while the system remained oversupplied.
Gas for next-day delivery rose 0.15 pence at 29.05 pence per therm by 1039 GMT from the previous settlement, while gas for immediate delivery was 0.10 pence higher at 29.20 p/therm.
Britain's gas system was oversupplied by 9.2 million cubic metres (mcm), with demand forecast at 324.7 mcm - above Wednesday's level of 314 mcm, National Grid (Amsterdam: NG8.AS - news) data showed.
Flows from the UK Continental Shelf have increased after planned maintenance in the North Sea was completed. But the send-out of liquefied natural gas has fallen slightly.
"It's a bit colder and there's a bit more demand, but overall not much changed, the prompt could simply by tracking the front-month contract," in the absence of other fundamental drivers, a UK-based gas trader said.
The month-ahead March gas contract traded 0.15 pence per therm higher at 28.65 p/therm.
Temperatures are forecast to decline by a couple of degrees Celsius by the weekend, according to Britain's Met Office.
But milder temperatures are set to return from Feb. 20, according to Thomson Reuters (Dusseldorf: TOC.DU - news) meteorologist Georg Muller.
The benchmark summer 2016 gas contract fell 0.05 p/therm at 27.05 p/therm.
In the Netherlands, the day-ahead gas price at the TTF hub dipped by 0.20 euro per megawatt-hour to 11.98 euros/MWh.
In the European carbon market, front-year EU allowances declined by 0.19 euro to 4.70 euros a tonne.
(Reporting by Oleg Vukmanovic; Editing by Tom Heneghan)