Commercial Gas Prices Eased by Warm Weather – Despite the fact that Britain’s gas stocks are very low for this time of the year and the spike in crude oil prices.  Commercial gas prices eased on Thursday as demand dropped thanks to a rise in temperatures.

Gas for delivery on Thursday fell from 32.30 pence at close on Wednesday to 30.50 pence per therm by around 1030 GMT, while contracts for the working days of next week dropped a penny to 29.50 pence and May fell to 30.50 pence ($4.71 per mmbtu).

“Demand is much lower thanks to this warmer weather and gas prices are down.” said an independent gas broker.

Gas prices went up in the beginning of the week pushed by an unusually cooler weather for this time of the year which increased gas demand for heating but a warmer weather spell that began on Thursday is expected to erode overall gas consumption in the short term.

At the same time, relatively high gas prices in Britain compared to the United States has helped attract several cargoes of LNG to the UK, with at least four more tankers expected to arrive over the next few weeks. Also helping commercial gas prices drop.

With Britain’s gas stock currently at 20% full – nearly 50% less when compared to last year’s 39 %full, according to data from Gas Storage Europe, demand for gas restock during summer will likely be stronger than last year, even though prices for winter 2010-2011 fell.

Prices for winter 2010-11 fell 0.70 pence to 42.85 pence per therm, while contracts winter 2011-12 fell 0.15 pence to 50.20 pence.

Last year gas was the dominant fuel for UK power generators which helped lower energy prices and we are seeing the same scenario this year.

Baseload electricity for Friday fell to £37.40 per megawatt hour, while the day-ahead auction price on Britain’s N2EX wholesale power exchange was set at £36.78.

Other energy contracts also fell, reflecting lower gas prices. May baseload contracts plunged 40 pence to £35.25 per megawatt hour and June contracts went down 20 pence at £35.85, according to a leading energy broker.

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4. Business Gas Prices Lower…

   It must be to do with supply and demand, as we dont need as much gas during the summer months, so prices always seem to fall, perhaps we should consider more commercial gas storage in the UK. This would go along way to avoiding some of the recent price…

   Trackback by pligg.com — May 1, 2010 @ 3:30 am

5. Business Gas Prices Lower…

   Looks like the summer is finally here then if UK commercial gas prices are coming down. I still dont get it, why gas prices go up in the winter months and come down in the summer months. Why dont they just store more gas during the summer months when g…

   Trackback by links.coolmsgs.com — May 4, 2010 @ 4:40 pm

6. Lower Commercial Gas Prices…

   Why is it that prices seem to go down when we least need the product, surely the government should investigate this further. We have all had the misery of high energy prices for the last few years, and it…

   Trackback by pligg.com — May 12, 2010 @ 7:33 am

7. Business Gas Prices Lower…

   Why is it that prices seem to go down when we least need the product, surely the government should investigate this further. We have all had the misery of high energy prices for the last few years, and it…

   Trackback by social.weehz.com — May 16, 2010 @ 9:37 am

8. Lower Commercial Gas Prices…

   Looks like the summer is finally here then if UK commercial gas prices are coming down. I still dont get it, why gas prices go up in the winter months and come down in the summer months. Why dont they just store more gas during the summer months when…

   Trackback by socialwebcms.com — May 25, 2010 @ 8:43 pm

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