LONDON, Sept 16 (Reuters) - UK prompt gas prices fell on Friday as demand fell ahead of mild weekend weather forecasts and supply was stable, traders said.
Day-ahead gas traded around 54 pence per therm, down from 56.20 on Thursday afternoon. Within-day gas was at 49 pence at 0930 GMT.
"The within-day contract opened lower by 3.5 percent and continued to fall this morning given the comfortable nature of the system," energy consultants Inenco said in a note.
Further out on the curve, the winter 2011/2012 contract also eased, falling around 0.45 pence since Thursday afternoon to 72.85 pence per therm.
Traders said that a further drop was prevented when the contract found support at its 50 exponential daily moving average value just above 72.20 pence.
Because the contract is now close to delivery, traders said it was beginning more like a prompt market product rather than a forward contract.
Despite the bearish market on Friday, a bank report on Friday said it expected UK gas prices to rise in winter as Asian demand for liquefied natural gas would squeeze European markets.
In Britain's over-the-counter electricity marker day-ahead baseload traded at 49.85 pounds pounds per megawatt hour (MWh), up from 48.60 on Thursday afternoon.
Winter 2011/12 baseload traded around 58.10 pounds a MWh on Friday morning, down around 50 pence on the day slightly, following gas. Continued...
