British wholesale gas prices rose on Thursday as storage injections ahead of colder weather expected for next week left the system undersupplied.
Gas prices for delivery the next day were trading at 76 pence a therm at 0930 GMT, up three pence since Wednesday morning, and prices for delivery within the day were around 76.4 pence a therm.
The price rise came on the back of an undersupplied system.
Gas demand was expected to be 313.9 million cubic metres (mcm) on Thursday, according to data from National Grid (LSE: NG.L – news) , almost 30 mcm above expected flows of 294.9 mcm.
Analysts said that the price rises were a result of an undersupplied system as gas companies were injecting gas into dwindling storage sites in preparation for colder weather expected next week.
“We’re taking the opportunity of relatively mild weather this week to inject some gas into storage that we believe will be needed if it gets cold again next week,” one gas storage analyst said.
UK gas prices rise on undersupplied sytem