The UK wholesale price in November for gas has dropped to the lowest since 2010.
Gas for November this year traded at 51.60 pence per therm (p/th), according to analysts at ICIS, 10 pence cheaper than November 2011, and lower than last November’s when prices per therm were at 66.900.
There is still along way to go until they are at the levels of November 2010 when the levels were around 46p/th.
Tom Marzec-Manser, European analyst at ICIS said “Storage levels in Britain are close to maximum”, which is down to the UK keeping greater reserves for the winter, and also pressure from completing the Russia-Ukraine deal.
Last week the UK’s largest store, Centrica’s Rough storage, hit record “fullness”.
He added: “We have been able to increase our storage stocks a lot more than usual as last winter was relatively mild. So when we started to refill them it was from a much higher base. Also Asian demand for LNG [liquefied natural gas] is beginning to wane, so a little more is being delivered to Britain and the European mainland.”