HomeNewsEUROPE GAS: Prices mixed as warm weather supports softer demand

EUROPE GAS: Prices mixed as warm weather supports softer demand

5/14/2024

LONDON—Dutch and British wholesale gas prices were mixed on Tuesday morning as warm weather continued to stay above seasonal averages, supporting softer demand.

The benchmark front-month contract at the Dutch TTF hub inched down by 0.45 euro to 29.30 euros per megawatt hour (MWh) by 0845 GMT, while the July contract  was down by 0.12 euro at 29.75 euros/MWh, LSEG data showed.

In the British market, the front-month price fell by 0.54 pence at 71.00 pence per therm, while the day ahead contract was 0.15 pence higher at 69.75 p/therm.

"Strong flow levels and warm weather help to maintain a calm outlook," consultancy Auxilione said in a morning note.

LSEG analyst Yuriy Onyshkiv said that the market balance in northwest Europe remains comfortable and loose; however, the bearish momentum is losing steam amid stable supply and demand on the day ahead and across the rest of this week.

"With supply from Norway and LNG expected to be fairly stable, any changes to the renewable power generation forecast could provide some volatility. Additionally, changes to the Norwegian maintenance schedule which is expected to scale up again next week could also end the short period of price stabilization we expect over the next few days," Onyshkiv said.

European gas storage facilities were last seen 64.1% full, according to Gas Infrastructure Europe (GIE) data.

The high storage is expected to ease competition for LNG over the coming months.

In the European carbon market, the benchmark contract was 0.16 euros down at 69.65 euros per metric ton.

(Reporting By Marwa Rashad; Editing by Janane Venkatraman )

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