Same and Next-Day Gas Prices Were Valued Below 61.00 Pence/Therm

Same and next-day gas prices on the UK's NBP trading hub were valued below 61.00 pence/therm on the last trading day of the year, around 7 pence down on the start of the month. 

The within-day contract was valued at 60.50 p/th at 1200 GMT New Year's Eve, down by 0.65 p/th from the previous session, and the day-ahead contract lost 0.55 p/th at 60.90 p/th. 

Mild temperatures and subsequent low gas-burn have seen prices fall over the course of the month and the bearish trend continued Monday. 

At 1200 GMT, National Grid had forecast demand for the day pegged 33 million cubic meters below seasonal norms at 293 million cu m and the system was operating 16 million cu m long. 

Temperatures across the UK were mild for the last day of the year with both London in the South and Glasgow in the North registering 3 degrees Celsius above norms, CustomWeather showed. 

Flows from Norway on the Netherlands were strong and no storage withdrawals were required to balance the system, Grid showed. 

The Norwegian Langeled pipeline was operating at about full capacity rates of 70 million cu m/day and the Dutch BBL was contributing 28 million cu m/d. 

The bearish trend continued into the front month and quarter which were on the eve of expiry. 

Gas for January and Q1 13 delivery contracts each lost 0.35 p/th at 63.55 and 63.70 p/th, respectively. 

Seasonal contracts came under downward pressure, also, with the weaker prompt and soften oil prices. 

Crude futures were lower Monday as the market waited for a sign of the US fiscal cliff issue being resolved. 

The front month Brent crude contract was down 45 cents at $109.55/barrel. 

Talks over the weekend produced no deal between US lawmakers as the White House and Republicans failed to reach a compromise on how to avoid steep tax hikes and spending cuts come January 1, AFP reported Monday. 

Summer 13 gas was valued at 60.75 p/th, down by 0.20 p/th and Winter 13 was unchanged at 69.50 p/th.