U.K. natural gas for the next working day fell for a third session as forecasts for higher-than-average temperatures damped demand for the heating fuel.
The day-ahead contract dropped as much as 2.3 percent, according to broker data compiled by Bloomberg. The low temperature in London will be 8 degrees Celsius (46 Fahrenheit) on Dec. 24, compared with a 10-year average of zero, CustomWeather Inc. data on Bloomberg show.
Gas for Dec. 24 fell 2.1 pence to 64.1 pence a therm at 3:50 p.m. London time. The month-ahead contract dropped 0.6 percent to 66.25 pence a therm. That’s equivalent to $10.73 per million British thermal units and compares with $3.44 per million Btu of front-month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow will be 275 million cubic meters, 16 million less than normal for the time of year, National Grid Plc data show.
The delivery network will contain 351 million cubic meters of gas at the end of the period versus 345 million at the beginning, grid data show.
Imports from Norway, the biggest supplier of foreign gas to the U.K., were at a rate of 105 million cubic meters a day compared with an average of 110 million, Gassco AS data show.
Gas accounted for 26 percent of U.K. power production at 3:45 p.m., grid data show. Coal generated 47 percent, nuclear 18 percent and wind 3 percent.
Next-working day electricity dropped 5.2 percent to 45.75 pounds a megawatt-hour, broker data show.