LONDON: British prices for wholesale natural gas continued to decline on Thursday as higher temperatures reduced demand and healthy supply increased injections into storage.
Gas for delivery on Friday was down 0.50 pence from the previous close at 38.00 pence per therm by 0807 GMT, while gas for immediate delivery traded 0.40 pence lower at 38.00 pence per therm.
Demand on Thursday was forecast to be 169 million cubic metres (mcm), around 15 mcm below the seasonal norm, as higher temperatures reduced the need for heating.
Temperatures in some parts of Britain are seen reaching 25 degrees Celsius on Thursday and Friday, compared to the seasonal norm of around 15 degrees C, meterologists said.
Gas flows were 5 mcm above demand, according to the National Grid, creating slight oversupply.
A lot of liquefied natural gas is due to arrive in Britain by July 10, carrying enough gas to meet 6.5 days' worth of current daily demand.
Further along the curve, prices for delivery in the winter 2014/2015 season were at 56.40 pence per therm, 0.3 pence below their last close.
Traders said the price drops resulted largely from healthy gas storage.
Britain's gas storage sites are filled to an average of 84 percent, or over 4 billion cubic metres (bcm), compared to under 2.5 bcm at this time last year, according to Gas Infrastructure Europe data.
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