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RTRS:UK gas prices return to levels typical for season
 
* Demand seen at 347 mcm, 4.5 pct above seasonal norm
* Temperatures to remain above 0 degrees Celsius this week

London, Feb 13 (Reuters) - UK spot gas prices on
Monday morning returned to levels common during the winter
heating season as milder weather pulled demand back closer to
seasonal norms.
At 346.9 million cubic metres (mcm), Monday's gas demand was
expected to be around 4.53 percent above the daily seasonal
norm, according to data from National Grid.
Last week, cold weather pushed daily gas prices and demand
to multi-year highs, but spot gas prices in Britain have come
off more than 40 percent from their highs around 100 pence per
therm last week.
Gas prices for delivery on Tuesday were trading
around 58.55 pence per therm at 1030 GMT, and within-day prices
were around 58.75 pence.


Point Carbon analysts said that they expected UK spot gas
prices to drop further.
"Consumption is forecast down for day-ahead giving a bearish
signal for the day-ahead contract," Point Carbon said, and added
that despite lower deliveries from liquefied natural gas (LNG)
terminals it expected less need for withdrawals from gas storage
facilities in coming days.
Gas storage sites across Britain were on average almost 53
percent full on Sunday, according to data from Gas
Infrastructure Europe.

WEATHER
The UK's Met Office said that it did not expect a return to
sub-zero temperatures in the coming days, and that there were no
severe weather warnings issued.
Point Carbon's weather forecasters said that "a major high
mostly situated to the west of the UK will dominate the weather
for the rest of this week (with) daytime temperatures in the
range of 6-7 degrees Celsius."

TECHNICALS
Further out on the price curve, the NBP Summer 2012 gas
contract has fallen back below its 50 exponential daily moving
average (DMA) value and is now struggling to maintain itself
above its 23.6 percent Fibonacci retracement value above 55.15
pence per therm.
Last week, the product rose to almost 58 pence, but failed
to break through its 100 DMA value.
Moving average convergence-divergence (MACD) signals are
converging towards negativity, implying more downward momentum
in the market.

POWER
Power prices for baseload (24 hours) delivery on Tuesday
were at 56 pounds a megawatt-hour, down 6.5 pounds since Friday
afternoon.

Source