June 10 (Bloomberg) -- U.K. winter natural gas advanced to its highest level in more than seven weeks after Brent crude rose above $120 a barrel for the first time since May 5.
Gas for the six months from October climbed as much as 0.65 pence, or 0.9 percent, to 72.9 pence a therm, its highest since April 18, according to broker prices compiled by Bloomberg. It was at 72.7 pence as of 4:15 p.m. in London, equal to $11.80 a million British thermal units, which would be the contract’s fifth weekly gain.
Brent for July settlement climbed as much as 0.4 percent to $120.07 a barrel on London’s ICE Futures Europe exchange, its highest since May 5. It was at $118.47 a barrel as of 4:28 p.m. in London. Oil costs can boost the price of some mainland European gas contracts, affecting the U.K. market because of pipeline links to the continent.
U.K. winter baseload power advanced 40 pence to 59.55 pounds a megawatt-hour, broker data show. Baseload is delivered around the clock.
National Grid Plc forecast gas demand in the 24 hours through 6 a.m. tomorrow at 211 million cubic meters, 34 million less than normal for the season, according to the pipeline manager’s website. The nation’s pipelines will hold 337 million cubic meters of the fuel at that time, about the same as at the start of today.
Within-day gas fell 0.1 pence to 59.15 pence a therm. Gas for the next working day was at 58.9 pence at 4:30 p.m. yesterday. Power for the next working day rose 55 pence to 51.10 pounds a megawatt-hour.
--Editors: Rob Verdonck, Raj Rajendran
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