U.K. day-ahead natural gas prices surged to their highest in more than a year as Centrica Plc (CNA) restricted withdrawals from the nation’s biggest gas store and freezing weather gripped Europe’s biggest market.
Gas for tomorrow jumped as much as 8.3 percent while the within-day contract rose as much as 11 percent. Minimum temperatures in London are forecast to be below freezing in seven of the next 10 days, according to CustomWeather Inc. on Bloomberg. The 30-year average minimum is 3 degrees (37 Fahrenheit).
Cold weather drove withdrawals of the fuel to a six-day high yesterday, when 4.5 percent the nation’s reserves were removed from stores. Centrica Plc’s Rough storage field in the North Sea, Britain’s largest, said today it would limit withdrawal capacity by 25 percent for the four hours through 2:15 p.m. London time. Day-ahead gas has averaged 70 pence so far this year, 17 percent more than in the year-earlier period.
U.K. Natural Gas Jumps to 1-Year High on Weather, Storage Limits