Centrica Share News (CNA)

Mon, 11th Jun 2012 11:12

By Henning Gloystein

LONDON, June 11 (Reuters) - British prompt gas prices rose

on Monday morning as the system was almost 15 million cubic

metres (mcm) undersupplied and forward prices were lifted on the

back of Brent crude prices rising back above $100 per barrel.

Gas prices for delivery next day were trading at 55.90 pence

per therm at 0945 BST (0845 GMT), up 0.95 pence from Friday

morning, and prices for within-day delivery were up 0.75 pence

to 55.85 pence a therm.

Analysts said that the rises were the result of an

undersupplied market and rising consumption expected this week.

'Consumption is forecasted up for day-ahead, which is

bullish for spot gas prices, and the other bullish elements are

increased oil prices and the short system this morning,'

analysts at Point Carbon said.

Daily gas demand was expected to be 217.7 mcm on Monday,

around 15 percent below the seasonal norm, according to National

Grid, but still around 15 mcm above expected flows.

Power prices for baseload (24 hours) delivery on Tuesday

were at 43.80 pounds per megawatt-hour (MWh), up 1.3 pounds per

MWh.

Further out on the curve, gas prices for delivery next

winter were up slightly to 65.75 pence per therm, fuelled by

front-month Brent crude rising back above $100 per

barrel.

'Brent oil will edge up into a range of $103.30-$104.01 per

barrel as rebound from the June 4 low of $95.63 has extended,'

Reuters' technical analyst Wang Tao said.





(Reporting by Henning Gloystein; editing by Jason Neely)

((Henning.Gloystein@thomsonreuters.com)(44 207 542

6659)(Reuters

Messaging:)(henning.gloystein.thomsonreuters.com@reuters.net))



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