U.K. Next-Day Natural Gas Declines as System Flows Exceed Demand

U.K. natural gas for next-day delivery declined for a second day as system flows were forecast to increase amid colder than average weather.

Day-ahead gas dropped as much as 3.3 percent, according to broker data compiled by Bloomberg. Flows in the 24 hours to 6 a.m. tomorrow were predicted at 371 million cubic meters a day compared with 353 million today, National Grid Plc data show. Demand will be 377 million cubic meters compared with a seasonal normal of 308 million, grid data show.

The low temperature in London was minus 1 degree Celsius (30 Fahrenheit) today versus a 10-year average of 4 degrees, CustomWeather Inc. data on Bloomberg show.

Gas for tomorrow fell as much as 2.3 pence to 67.2 pence a therm, the lowest since Jan. 10, and was trading at 67.7 pence at 4:27 p.m. London time. Next-month gas slid as much as 1.3 percent to 66.2 pence a therm. That’s equivalent to $10.48 per million British thermal units and compares with $3.64 per million Btu of front-month U.S. gas.

Flows from Norway, the U.K.’s biggest source of imported gas, were as low as 85 million cubic meters a day, the least since Jan. 9, Gassco AS data show.

Electricity for tomorrow rose as much as 3.9 percent to 52.45 pounds a megawatt-hour, and was a 52 pounds at 4:27 p.m., broker data show.

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