Monday, 30 January 2012

UK winter 2012 #gas prices touches 11-week high

British gas for summer delivery surged to a seven-week high early on Monday as temperatures plunged and storage withdrawals accelerated to meet rising demand.

Gains pushed summer 2012 gas back above technical support levels, but brokers questioned the longevity of the surge given the bearish backdrop that has underpinned a months-long decline in prices.

The contract retreated to 57.60 pence ($0.90) at 10:30 GMT on Monday, up on the day by just under a penny, following a burst of buying interest that propelled it to a high of 58.4 pence earlier that morning.

UK gas for next winter delivery touched 11-week highs of 70.50 pence but fell back to about 70 pence in mid-morning trade, pulled lower by softening prompt prices which drove gains across the forward curve. The contract was still up 1.45 pence on the day.

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