RTRS: UK gas slips on lower crude, U.S. gas; power firms
LONDON, Dec 10 (Reuters) - British gas prices along the curve fell on Thursday, weighed by lower crude and U.S. prices, while prompt values built on this week's rally.
Gas for Friday was trading at 31 pence per therm ($5.036 per mmbtu) at 1126 GMT, up 0.30 pence on day-ahead contracts traded late on Wednesday.
January slipped 2.10 pence to 30.50 pence, while February was down 1.50 pence to 31.45 pence and gas for first quarter 2010 was down a penny to 31.30 pence.
"At the beginning of the week, people were preparing for the cold weather, but they aren't that nervous now. There isn't that bullish sentiment anymore," one gas trader said.
Both U.S. and British gas prices were weighed by falling crude oil, which hovered below $71 a barrel after U.S. government inventory data highlighted the weak state of demand in the world's top energy consumer. [ID:nSP342418]
Gas demand for Friday was 336 million cubic metres per day (mcm), higher than season norms of 328.8 mcm, the National Grid website showed.
But confidence in supply was strong, with storage levels still high and a steady line of liquefied natural gas (LNG) tankers expected to arrive in December.
For a list of LNG cargoes scheduled to arrive, click here: [ID:nGEE5B90BM]
Along the curve, prices softened after New York Mercantile Exchange natural gas futures fell 4 percent in trade on Wednesday on high storage and a sluggish U.S. economy. [ID:nN09235667]
Both U.S. and British gas weakened on falling crude oil prices, which hovered below $71 a barrel on Thursday due to demand doubts. [ID:nSP342418]
In power, prices were firm as low gas prices offset lower wind generation, traders said.
British baseload power for Friday -- traditionally lower due to reduced industrial demand -- was 34.50 pounds per megawatt hour compared with 34.75 pounds for day-ahead contracts late Wednesday. "There's less wind forecast, but because it's for Friday, being flat actually means it's up a bit," one trader said.
January was 34.90 pounds versus 35.40 pounds, while February was 35.75/36.25 pounds against 36.60 pounds.
(Reporting by Kwok W. Wan; Editing by Veronica Brown)
