UK gas price rise as cold spell drains stocks

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UK business gas prices rose on Thursday as
high heating demand in a prolonged cold spell continued to drain Britain’s
limited gas stocks, increasing fears over supplies for the rest of winter.

With temperatures plunging to less than -20 degrees Celsius in Scotland
overnight, prompt UK wholesale gas prices rose to their highest level since
early 2009, when a fifth of Europe’s gas was cut off during a row between
Russia and Ukraine.

Gas for delivery on Thursday rose to a high of 64 pence per therm before
easing to 62.50 at 0910 GMT, up 1.25 pence from the close on Wednesday,
while gas for delivery on Friday traded roughly in line with Thursday
contracts.

Britain’s biggest gas storage site, Rough, continued to pump into the UK
network at near capacity, according to data from National Grid, leaving less
to top up supplies for later in winter which is usually colder than early
December.

http://af.reuters.com/article/energyOilNews/idAFLDE6B10GC20101202

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