LONDON: British prompt wholesale gas prices fell on Thursday due to oversupply created by unseasonably mild temperatures and higher imports from Norway.
Gas for delivery on Friday fell by 5.1 percent to 31.65 pence per therm while gas for immediate delivery dropped by 7.86 percent to 31.65 p/therm.
"Prompt prices continue to fall in line with warm conditions expected over coming weeks," one UK-based trader said.
Britain's Met Office said temperatures could reach as high as 16 degrees Celsius in the south of the country on Thursday, which it desdcribed as "exceptionally mild for this time of year".
Average temperatures in Britain in December are usually around 7-8 degrees.
Meanwhile, pipeline gas supplies from Norway rose after its key processing plant Kollsnes ramped up production after an outage.
The British gas system was 11 million cubic metres (mcm) oversupplied, with demand forecast at 232 mcm, well below the seasonal norm of 278 mcm, National Grid data showed.
Low demand because of warm weather also meant that there was no need to withdraw gas from storage, which has put pressure on winter prices, traders said.
Further along the curve, gas for next-quarter delivery fell 0.62 pence to 34.43 pence/therm.
In the Netherlands, the day-ahead gas price at the TTF hub fell by 0.60 euros/MWh, or 3.93 percent, to 14.65 euros/MWh.
In the European carbon market, front-year allowances eased by one euro cent to 8.19 euros a tonne.
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