Forward British gas prices fell as oil markets sagged on Tuesday, while the prompt was supported by tight supplies. Winter 2008 gas prices dipped below one pound per therm for the first time since August 26th, dropping 3 pence to a late low of 98.75 pence per therm, according to one broker, as crude fell more than $2. ‘A slightly weaker front month didn’t help either as it is a winter contract,’ one trader said. October gas prices fell 0.75 pence to 76.40 pence per therm, while November dropped 2.85 to 98.75 pence. Forward power prices also fell, with many power generators using gas to fuel their plants, and falling carbon emissions prices helped weigh on the curve. Winter 08 baseload power was off 2.20 pounds at 95.25 pounds per megawatt hour by late morning, while Q1 09 fell 1.75 pounds to 93.25 pounds, according to one broker. Baseload power for Wednesday was heard traded at around 86.00 pounds.

Prompt gas prices firmed as supplies remained tight despite the Theddlethorpe gas import terminal reopening after maintenance on Monday and increased flows from Norway, with gas for delivery on Tuesday up about 3.5 pence at 69.00 pence per therm and Wednesday contracts ending at around 68.50. Prompt gas prices ended the session off earlier highs as supplies improved late in the day. Carbon emissions prices dropped 139 euro cents to 22.80 euros per tonne, dragged lower by softer oil markets, lower German power prices and speculator selling, traders said.

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