Forward-season at one-month high, supported by prompt
* Tight LNG supply puts pressure on storage
* System opened 20 million cubic meters/day short
London, Jan 27 (Reuters) - British prompt gas prices hit one-month highs on Friday, rebounding ahead of lower temperatures next week and as unexpectedly high demand put pressure on storage withdrawals amid falling liquefied natural gas (LNG) shipments.
UK gas for Monday delivery rose nearly 5 percent to 56.10 pence per therm as traders factored in the impact of colder weather on demand.
Traders say high storage withdrawals will be needed to balance an undersupplied transmission system, with terminals providing limited support amid fewer numbers of LNG deliveries.
The system opened 20 million cubic meters/day short of gas this morning due to unexpectedly high demand. Network manager National Grid under-estimated Friday gas demand by more than 20 mcm/day, prompting a scramble to balance the system with storage withdrawals.
The benchmark summer 2012 gas contract also attained one-month highs at 55 pence, up 2.45 pence on the day, supported by bullish momentum on the prompt.
"High storage withdrawals will be required for day-ahead (demand) meaning prices could need to trade above the near end of the curve," market analysts Point Carbon said in a note.
WEATHER
Forecasters said unsettled but chilly conditions will dominate next week, with rain expected mainly in north-west England and occasional overnight-frosts during the week.
Conditions are expected to become slightly milder towards next weekend. (Reporting by Oleg Vukmanovic; Editing by Alison Birrane)
