U.K. winter natural gas for delivery fell to six-week lows as Brent crude slumped to its lowest since February amid growing fears about a global economic recovery.
Brent dipped below $100 overnight for the first time since Feb. 8. Gas prices have fallen 10 percent since April 4 when contracts rallied to the highest this year in the wake of the earthquake in Japan and the closure of nuclear power stations in Germany.
Gas for delivery in the six months from October dropped as much as 1.1 percent, or 0.75 pence, to 67.5 pence a therm. The contract was at 67.65 pence at 10:40 a.m., according to broker prices compiled by Bloomberg. That’s equal to $11.10 a million British thermal units. A therm is 100,000 Btu.
Summer 2012 gas fell 1.3 percent to 62.20 pence, the lowest since March 14.
Brent fell as much as $5, or 4.8 percent, to $98.74 today on the ICE Futures Europe exchange. It was at $101.63 at 10:40 a.m. U.K. time. Most of mainland Europe buys its gas on multiyear contracts linked to the cost of crude-oil products. The price on the Continent affects the British price due to pipeline connections.