Chilly Monday forecast bumps up gas price – DMR
A chill predicted for Monday has boosted the cost of gas bought for the next day, according to the daily market report from npower.
Alex Guiot, Client Portfolio Manager on the Optimisation Desk said: “Latest demand forecasts suggest a demand increase of 18mcm (million cubic meters) at the start of next week as temperatures dip almost two degrees below normal on Monday.”
Mr Guiot said: “As a result, prompt gas prices have [moved] higher, with the day ahead trading at 51.25 pence per therm.”
Day-ahead prices closed at 49.55 pence per therm yesterday, the Optimisation Desk confirmed.
But this “won’t last”, Mr Guiot suggested, “as we are expecting much warmer weather at the end of next week”.
Indeed, this afternoon prices have since subsided to 51.10 pence per therm.