U.K. Same-Day Gas Falls to Lowest Since 2009 Amid Oversupplyby
System is oversupplied by 28 million cubic meters a day
Demand falls below seasonal norms as temperatures stay high
A warm end to the summer holiday season pushed U.K. natural gas to a six-year low.
Gas for immediate delivery in the U.K. plunged to the lowest level since December 2009 as planned maintenance at the biggest entry point for Norwegian fuel into the U.K. failed to create a shortage. Warmer-than-usual weather curbed demand for the fuel, which Britons mainly use for heating.
“Prompt prices have opened the session lower, coming under pressure from the comfortably supplied system despite the reduction in Norwegian output,” Marcel Boonaert, head of trading at Wingas U.K. Ltd., said in an e-mailed note.
Within-day gas fell as much as 5.9 percent to 26.45 pence a therm ($3.46 a million British thermal units) by 4:05 p.m. in London, according to broker data compiled by Bloomberg.
The system is 28 million cubic meters (988 million cubic feet) a day oversupplied, according to National Grid Plc. Flows from Norway, the U.K.’s biggest foreign supplier, into the Easington terminal in northwest England halted for a one-day test while total Norwegian exports fell below their 10-day average amid maintenance.
Temperatures for the rest of today are forecast at 19.7 degrees Celsius (67 Fahrenheit), 3 degrees more than the 10-year average, The Weather Co. data show.