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UK Heating Gas Prices Spike To 2013 Highs Amid Weather "Yellow Warning"

The U.K.’s Met Office issued a ‘yellow’ warning after dumps of snow over the weekend disrupted travel, sending the price of same-day heating gas prices to their highest since 2013...

The average temperature in the U.K. for the rest of Monday will be 1 degree Celsius (34 Fahrenheit), compared with a 10-year average of 5.2 Celsius, according to Bloomberg’s weather model. 

Bloomberg also notes that supplies in the system could plunge 11 percent by the end of the day, according to network manager National Grid Plc. Supplies from the Bacton terminal in Norfolk are below the 10-day average after Total SA said exports from the Elgin Franklin field that feed it have been reduced by about 60 percent from normal levels, potentially until Wednesday evening. Flows into the St. Fergus terminal in Scotland also plunged. Storage supply picked up some of the slack, rising to the highest since Dec. 1.

“Whilst the weather-related heating demand was expected, the reduction in flows via a number of terminals was not,” Nick Campbell, an energy risk manager at Inspired Energy Plc, said by email.

“Therefore this has left the system tight and battling to pull in more gas from the continent.”