Weather fears see gas prices climb

With National Grid forecasting Tuesday gas demand to be 25 per cent higher than seasonal norms, prompt and curve prices soared alike.

Gas for Tuesday delivery traded at a fresh 21-month high at 57.50 pence, up 2.75 pence from the previous session, but later fell closer to 57 pence per therm.

"The market is a bit concerned, we're approaching record high demand.

"This is a full-on January darkest days weather condition," one gas trader said.

"It's coping fine. It's just a bit fragile, it's very very unusual this early in."

Across Europe there was a similar picture, with temperatures expected to be below norms for the next 10 days, according to Meteorlogix.

Despite the cold weather, the UK gas system was balanced yesterday, with high imports from Norway and the Netherlands.