* Gas system remains tight
Aug 13 (Reuters) - Wholesale gas prices in Britain rose on Monday morning as the system opened under-supplied and firm oil and power prices helped lift the market, traders said.
Gas prices for next day delivery were up over 2 pence per therm between Friday and Monday morning to 55.55 pence a therm at 0830 GMT, their highest level since mid-July, and within-day prices were also up over 2 pence to 55.30 pence per therm.
Analysts said that the rises were a result of lower supplies from Norway as well as lower import levels of liquefied natural gas (LNG).
" S upply elements point in a bullish direction with lower Norwegian imports and lower LNG send outs from South Hook c ausing th e UK system opening short this morning," analysts at Point Carbon said, adding that they were bullish for their gas price outlook on Monday.
At 168.1 mcm, Monday's gas demand was more than 30 percent below the seasonal norm, according to data from National Grid.
Despite this low demand, the system remained tight, with flows expected to be slightly lower at 164.6.3 mcm.
Reuters data showed that around 420,000 cubic metres of LNG would be injected into the UK system between now and August 16, via two LNG tankers from Qatar.
In the power market spot prices also rose, mirroring movements in the gas market.
Prices for baseload (24 hours) delivery the next day were up 35 pence per megawatt-hour to 40.40 pounds a MWh.
The UK's Met Office said it expected Tuesday and Wednesday to be warm, with temperatures rising as high as 25 degrees Celsius, but that showers and strong winds would occur across the country from Wednesday.
CURVE
Further out on the curve, gas prices were also up, with prices for delivery next winter rising by 80 pence a therm since Friday to 65.80, their highest level since early July.
This means that the contract has gained over 6.5 percent since the beginning of the month, and that it may soon be testing resistance at its 100 exponential daily moving average (DMA) value of around 66 pence per therm.
The last time the contract was above its 100 DMA was in the first quarter this year.
However, the contract's relative strength index (RSI) has risen above 66 points, with a value of 70 points or more implying an overbought market.
Traders said the rises were a result of the bullish oil market, which saw front-month Brent crude prices rise above $114 per barrel on Monday morning. (Reporting by Henning Gloystein; Editing by Nina Chestney)
Source: http://in.reuters.com/article/2012/08/13/markets-britain-gas-power-idINL6E8JD3MA20120813
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