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LONDON, June 29 (Reuters) - British wholesale gas prices traded higher on Wednesday as oil prices continued to rebound, while prompt contracts were driven by lower supply from the Netherlands and liquefied natural gas (LNG) terminals.
The key winter 2011/12 gas price rose 0.40 pence on Wednesday to 70.05 pence per therm, paring losses made last week when eurozone debt worries spread concerns about energy demand.
But hopes that indebted Greece will pass its austerity programme further buoyed the oil market on Wednesday, which in turn lifted British curve gas prices.
UK gas prices are indirectly affected by oil prices because stronger oil means continental European gas suppliers may buy more gas in the UK over coming months as their oil-indexed supplies rise in price.
"Prices are following oil and the euro seems to be surviving," one UK gas trader at a utility said.
"We are tracking oil so I think if that goes up so does winter 2011 gas and vice versa."
