UK Wholesale Spot Gas Prices Jump to Two-Year High on Near Record Demand

Spot UK wholesale gas prices on Monday jumped above 70 pence per therm - the
highest level in over two years - as gas demand hovered close to record high
levels.

Ongoing freezing temperatures pushed up demand from local distribution
zones, which include residential heating, and meant overall consumption was
33% above normal December levels.

The key Day-ahead wholesale gas contract, the price for gas to be delivered
on Tuesday, traded at 71.50 pence per therm on Monday morning, a rise of
6.40 pence per therm from Friday. The last time the contract closed above 70
pence per therm was on 31 October 2008.

Demand reached a record high of 465.80 million cubic metres at 08:03 London
time, according to National Grid. But this had fallen to 461.50 million
cubic metres by 10:02. National Grid estimates total demand levels for the
day on an hourly basis.

Highest ever demand was 465.5 million cubic metres on 8 January 2010.
Highest demand this winter to date was 456.6 million cubic metres on 2
December.

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ump_to_twoyear_high_on/