Wholesale gas prices correct downwards after previous rise on Norway outages
(Reuters) - Dutch and British wholesale gas prices declined on Tuesday morning after rising the previous day on extensions to Noregian outages.
The Dutch October contract fell by 1.70 euros to 41.70 euros per megawatt hour (MWh) by 0808 GMT, while the November contract was 1.35 euros lower at 45.65 euros/MWh.
In the British market, the day ahead contract fell by 2.50 pence to 107.50 pence per therm while the October contract was down 1.35 pence at 108.50 p/therm.
Day-ahead prices on Monday rose due to maintenance outage extensions in Norway to near the 200-day moving average which could act as a resistance level today, said LSEG gas analyst Ulrich Weber.
Further changes to Norway's outage schedule is expected but despite this, the supply situation should improve over the coming days for Norwegian imports and liquefied nautral gas imports, he added.
Traders said contracts were overbought and expected some selling today.
"Fundamentals in the short-term remain comfortable, with European gas storage 95% full as we head closer to the start of the new gas year, which officially gets underway on Oct. 1," said analysts at ING Economics.
In Britain, wind power output is above normal which could soften gas-for-power demand. In north-west Europe, wind generation should also recover.
French nuclear output is also expected to rise by 5 gigawatts this week, while solar generation is seen declining, LSEG data showed.
In the European carbon market, the benchmark contract fell by 1.07 euro to 84.20 euros a ton.
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