U.K. Natgas Falls Most in Four Months as Supplies Swamp Demand
U.K. natural gas for within-day delivery dropped by the most in more than four months as forecast flows overwhelmed predicted demand.
Gas for today slumped 16 percent, the biggest decline since June 21, according to broker data compiled by Bloomberg. Flows in the 24 hours to 6 a.m. tomorrow were predicted at 222 million cubic meters, while demand was expected to be 194 mcm, National Grid Plc data show.
Same-day gas dropped 10.1 pence to 52.8 pence a therm at 8:28 a.m. London time. That’s equivalent to $8.55 per million British thermal units. Next-day gas fell 3.8 percent to 62.5 pence a therm, while November gas slid 0.8 percent to 68.5 pence, the least since Oct. 4.
Millions of U.K. commuters were advised to stay at home today as the worst storm for five years forced rail operators across southern Britain to cancel morning rush-hour services. Hurricane-force winds in excess of 80 miles per hour (129 kilometers per hour) batted the south-west of England, uprooting trees, as torrential rain caused localized flooding, according to the Met Office website and television reports from the British Broadcasting Corporation.
The delivery network was predicted to contain 375 mcm of gas at 6 a.m. tomorrow, up from 348 mcm 24 hours earlier, National Grid data show. Higher so-called linepack tends to spur lower prices so as to increase demand and balance the system.
Imports from Norway were at 72 mcm compared with a 10-day average of 61 mcm, according to Gassco AS data. Flows from the Netherlands were 22 mcm, up from the 30-day average of 13 mcm, National Grid data show.
Pipeline exports to Belgium were at 1.2 mcm per day versus an average of 0.4 mcm per day, Interconnector Plc data show.
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