U.K. natural gas dropped to the lowest level since August 2011 as warmer weather reduced demand for heating and storage after the mildest winter in seven years, reports Bloomberg News today.
Gas for front-month delivery, a European benchmark, fell as much as 3.8 percent on the ICE Futures Europe exchange in London and has lost 24 percent since Oct. 1, the first day of the winter heating season that ends today.
The day-ahead contract declined below 50 pence a therm ($8.32 a million British thermal units) for the first time since October 2011.
“Fifty pence a therm is a psychological limit. The weather forecast has been revised up and we have seen a lack of demand from power generation, so we are awash with gas.”
Nick Campbell, Risk Manager