New Delhi: British wholesale prices rose on Wednesday morning, tracking crude oil which jumped to its highest since 2014 after the United States abandoned a nuclear deal with Iran and announced the "highest level" of sanctions against the OPEC member.Day-ahead gas rose by 1.00 pence to 54.00 pence per therm at 0835 GMT
The June contract was up 1.38 pence at 53.75 pence/therm
First quarter gas was 1.93 pence higher at 62.08 p/therm
A jump in crude oil prices was behind the price rise in gas contracts, said a trader
"Brent is trading (higher) with the U.S. pulling out of the Iranian deal. The increase in coal contracts pushed gas higher yesterday and remains a risk in either direction," Thomson Reuters analyst Dimitrios Saratzis said.
Oil prices rose more than 3 percent on Wednesday, hitting 3-1/2-year highs, after U.S. President Trump abandoned a nuclear deal with Iran, raising the risk of conflict in the Middle East, upsetting European allies and casting uncertainty over global oil supplies.
The gas market ignored the oversupply in the system. National Grid data shows gas demand is forecast at 174.3 million cubic metres (mcm), 32.4 mcm lower than the seasonal norm. Flows are forecast at 179.5 mcm/day, leaving the system oversupplied.
Average daily temperatures in Britain are seen at about 12.2 degrees Celsius on Wednesday and are forecast at 11.2 C on Thursday, Thomson Reuters Eikon data shows.
Day-ahead gas at the Dutch TTF hub rose by 0.40 euros to 21.10 euros per megawatt-hour
The benchmark Dec-18 EU carbon contract grew by 0.35 euros to 13.95 euros a tonne