British prompt gas prices fell to the lowest level this year as mild weather forecasts and improved supplies took pressure from the system, while the forward market received a slight push from positive economic data.
Within-day gas prices fell to a 2012 low of 51.80 pence per therm on Tuesday afternoon, down more than two pence on the previous session and day-ahead gas prices also slipped, trading down to 52.00 pence.
The weaker spot gas prices were a result of milder weather and healthy supplies, despite a rise in demand above seasonal norms on Tuesday.
“Consumption is forecast substantially down this morning giving a clear bearish signal for day-ahead,” analysts at Point Carbon said, adding that its price outlook was between 51 and 53.20 pence per therm.
The UK’s Met Office said that weather conditions were expected to become “much milder across England and Wales” by Wednesday, with midday temperatures expected to rise from just above zero degrees Celsius on Tuesday to almost double-digit figures a day later.