U.K. Natural Gas Has Biggest Drop in 9 Months as Demand Plummets

U.K. natural gas had its biggest drop in nine months as milder weather damped demand.

Within-day gas fell as much as 12 percent, the steepest intraday decline since May 8, after yesterday closing at its highest in more than a year, according to broker data compiled by Bloomberg. Demand today will be 352 million cubic meters and fall to 341 million tomorrow, from 360 yesterday, according to National Grid Plc.

The same-day contract was down 11 percent at 71.3 pence a therm at 5:15 p.m. in London. Next-month gas dropped 0.9 percent to 67.4 pence. That’s the equivalent of $10.20 a million British thermal units and compares with $3.39 for U.S. gas.

Temperatures in the U.K. will average 5.25 degrees Celsius (41 Fahrenheit) through March 12, based on the GFS model supplied by MetraWeather on Bloomberg at 4:40 p.m. That’s down from a forecast for 4.63 degrees six hours earlier.

Supply was at 370 million cubic meters a day, compared with as little as 339 million cubic meters earlier today, grid data show. ConocoPhillips said supply from its Theddlethorpe terminal resumed after halting yesterday. Supply from the St. Fergus terminal rose as high as 89 million cubic meters a day, the most since Jan. 14, after dropping to 59 million cubic meters a day, grid data show.

Flows from Norway reached as much as 136 million cubic meters today, the highest since Bloomberg started compiling Gassco data in January last year. They were at 133 million at 5:18 p.m. SSE Plc said supply from its Hornsea storage site will be cut by about 16 million cubic meters a day through 6 a.m. March 1 because of low gas pressure.

The nation’s pipelines will contain 365 million cubic meters of gas at 6 a.m. tomorrow, up from 358 million at the start of today, according to National Grid.

Before it's here, it's on the Bloomberg Terminal.