Gas prices fall to eight month low on day ahead market

Mild weather forecasts meant the price of gas fell to an eight month low today, according to the Daily Market Report. Sarah Marshall, Client Portfolio Manager at npower said: “We’ve […]

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By Vicky Ellis

Mild weather forecasts meant the price of gas fell to an eight month low today, according to the Daily Market Report.

Sarah Marshall, Client Portfolio Manager at npower said: “We’ve seen further weakness on the curve this morning with the day ahead trading at its lowest level for nearly eight months.”

She added: “This comes as we have a long gas system and a lower demand going forward due to the continuation of milder temperatures.”

Wind generation fell to 2.4GW this morning but this is expected to more than double by the evening while nuclear generation has also dropped.

Despite this there are healthy power margins, added the market analyst.

Any drop in oil prices should be “capped” because protestors have taken over two oil pipes in Libya.