U.K. Day-Ahead Natural Gas Falls a Second Day as Demand Slides
U.K. natural gas for next-day delivery declined for a second day as warmer-than-average weather cut demand for the heating fuel.
The contract fell as much as 1.7 percent, according to broker data compiled by Bloomberg. The temperature through tomorrow will be 7.3 degrees Celsius (45 Fahrenheit), compared with a previous forecast for 7.1 degrees and a seasonal norm of 5.1 degrees, MetraWeather data on Bloomberg using the ECMWF model show.
Gas for tomorrow slid 0.3 percent to 74.5 pence a therm at 9:52 a.m. London time. Next-month gas fell 0.5 percent to 68.1 pence a therm. That’s equivalent to $10.28 per million British thermal units and compares with $3.55 per million Btu of front- month U.S. gas.
Demand in the 24 hours to 6 a.m. tomorrow is forecast at 300 million cubic meters, down from 312 million a day earlier, National Grid Plc (NG/) data show. The delivery network will contain 356 million cubic meters of gas at the end of the period, up from 351 million at the beginning, grid data show.
A 33 million cubic-meter-a-day cut in supplies from Norway’s Nyhamna gas platform ended at 6 a.m. Oslo time today, Gassco AS said yesterday on its website.
Flows from Norway, the U.K.’s biggest source of imported gas, were at 117 million cubic meters a day, the most since Feb. 28 and up from 34 million on March 3, Gassco AS data show.
Gas accounted for 32 percent of U.K. power production at 9:45 a.m., grid data show. Coal generated 43 percent, nuclear 15 percent and wind 3.9 percent.
Electricity for tomorrow slipped 1.2 percent to 53.25 pounds a megawatt-hour, broker data show.
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