LONDON (Reuters) - British day-ahead gas prices slid on Wednesday as flows from Norway resumed and supply from the Continent remained high, considerably outweighing demand.
Gas prices for delivery on Thursday fell by 0.7 pence to 71.8 pence per therm at 0854 GMT, while within-day gas was down 1.6 pence at 70.9 pence per therm.
Production at Norway's Ormen Lange gas field, which feeds Britain's main gas import route the Langeled pipeline, resumed on Wednesday after an outage on Tuesday reduced gas inflows.
Langeled flows are due to return to normal on Wednesday, while imports from the Continent through the BBL pipeline and Interconnector UK also remained high.
"The bearish side is dominant this morning. Langeled flows are back close to capacity, making the system very long. Meanwhile, Continental imports remain strong," analysts at Thomson Reuters Point Carbon said.
Britain's gas demand was expected to be 290 million cubic metres (mcm) on Wednesday, slightly above the seasonal average, according to the National Grid website.
But with flows estimated at 326.3 mcm/day, the system was oversupplied by 36 mcm/day.
Further along the curve, gas for delivery in the first quarter of next year was down 0.75 pence at 72.25 pence per therm.
In Britain's over-the-counter power market, baseload prices for delivery on Thursday were down 4.50 pounds from the previous close at 52.50 pounds per megawatt-hour (MWh).
The UK's Dungeness B-21 nuclear reactor is due to come back online from 2300 GMT on Wednesday, operator EDF Energy said on its website.
(Reporting by Nina Chestney; Editing by David Goodman)