U.K. Natural Gas Approaches Three-Week Low as Temperatures Rise
U.K. natural gas for next-working day delivery traded near a three-week low as a period of freezing weather ended earlier than predicted, cutting demand for the heating fuel.
The day-ahead contract gained 0.1 percent, according to broker data compiled by Bloomberg. The low temperature in London was 5 degrees Celsius (41 Fahrenheit) today, compared with a forecast of minus 1 degree yesterday, CustomWeather Inc. data on Bloomberg show.
Gas for Dec. 17 was at 66.45 pence a therm at 4:51 p.m. London time, after reaching 66.15 pence yesterday, the least since Nov. 26. Today’s level is equivalent to $10.72 per million British thermal units and compares with $3.30 per million Btu of front-month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow will be 300 million cubic meters, the least since Dec. 9, yet above the seasonal normal of 291 million, National Grid Plc (NG/) data show.
The delivery network is predicted to contain 341 million cubic meters of gas at the end of the period, down from 343 million at the beginning, grid data show.
Electricity for the next working day was unchanged at 49 pounds a megawatt-hour, broker data show.
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