Growth in gas prices snuffed out as warm weather dulls demand

City A.M. Reporter
BRITISH gas prices fell yesterday after warm weather diminished demand, leaving the system oversupplied.

The British gas system was oversupplied by 6.4m cubic metres (mcm) yesterday, according to National Grid data.

Gas demand yesterday was forecast at 156.4 mcm, below the seasonal norm of 206.8 mcm, as warm weather curbed central heating demand in many parts of the country.

Temperatures are expected to hit highs of 27 degrees celsius in London and other parts of the UK this weekend, according to the Met Office. Weather over the next five days will be “fine and warm” and conditions should continue to be dry and settled until early August, the weather forecaster said.

Gas for Friday delivery was 0.60p lower at 64.55p per therm in early trading yesterday.

Prices had been gaining ground over the past couple of weeks.