U.K. Natural Gas Falls as Above-Average Temperatures Forecast
U.K. natural gas for same-day delivery declined for a third day as warmer-than-average weather was predicted through the end of the year, cutting demand for the heating fuel.
Within-day gas slid as much as 1.6 percent, according to broker data compiled by Bloomberg. The low temperature in London was 5 degrees Celsius (41 Fahrenheit), compared with a 10-year average of minus 1 degree, CustomWeather Inc. data on Bloomberg show. It will stay above 1 degree through Dec. 31, according to the data.
Gas for today fell 0.95 pence, or 1.4 percent, to 65.7 pence a therm at 4 p.m. London time. Month-ahead gas dropped 0.5 percent to 66.85 pence a therm. That’s equivalent to $10.83 per million British thermal units and compares with $3.33 per million Btu of front-month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow will be 298 million cubic meters versus a seasonal normal of 296 million, National Grid Plc (NG/) data show. The delivery network was balanced, with the system predicted to contain 349 million cubic meters of gas at the end of the period versus 345 million at the beginning, grid data show.
Gas accounted for 35 percent of U.K. power production at 3:45 p.m., grid data show. Coal generated 43 percent, nuclear 15 percent and wind 1.7 percent.
Electricity for the next working day jumped 3.6 percent to 50.75 pounds a megawatt-hour, broker data show.
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