UK NBP natural gas prices fell in June 2017, with the front month Jul-17 contract falling 1.3% amid warmer weather, lower-than-normal demand, adequate supply, falling crude oil and lower U.S. natural gas prices. Further dated contracts fell with lower crude oil prices, despite weakening of the GB pound and the news of the Rough natural gas storage facility’s permanent closure. Contrary to the direction of the UK natural gas prices, UK electricity baseload prices gained, with the Jul-17 contract rising 4.4% and the Winter-17 contract ending the month 0.7% higher amid nuclear outages, higher global coal, carbon and European electricity prices due to a warmer-than-normal month on the continent increasing demand. June saw Asian LNG prices rise by $0.050/MMBTU (0.9%) amid global production outages and geopolitical tensions between the Gulf states and Qatar. The month-ahead Brent crude oil contract fell 4.8% amid rising OPEC exports, higher U.S. crude oil rig count and unwavering U.S. crude oil stocks, which drew down only 699,000 bbls despite the start of the U.S. driving season, when demand for gasoline rises as Americans drive for their holidays. North West Europe Coal prices rose by 5.5% as China moved to ban coal imports at 150 small ports from July 2017, Australia and South Africa suffered mining outages and Coal India Ltd announced plans to shut 37 of its underground coal mines despite union pressure to keep them open. Centrica announced that its Rough natural gas storage facility, the largest storage in the UK, will permanently close. The closure announcement came after a long period of maintenance that saw injections into the structure halted. Rough provides the UK with crucial natural gas in winter months when supplies are tight. Storage withdrawals supplied 10% of the U.K.’s natural gas in the winter of 2014 - 2015, with Rough accounting for about 70% of that. Britain will now be more reliant on imports from Norway and LNG shipments from Qatar during the winter, while during summer it will need to pump out excess natural gas to the continent that would otherwise be injected into storage. Our predictions for UK natural gas month-ahead contract made in our previous report proved correct, although prices ended the month slightly lower than expected. However Winter-17 contract fell 2.7%, while we expected the price to rise to 46.15-47.34 p/th. Although prices did rise at the start of the month, they came under pressure from falling crude oil prices mid-to-late month and ended up below our expectations. The UK electricity baseload front month firmed 4.4% to £41.47/MWh, which was above our expectations. The season ahead however followed our predictions and ended the month within the forecasted price range of £45.21 and £47.40/MWh.