EUROPE GAS-Dutch prices fall tracking U.S. futures
Dutch wholesale gas prices fell on Wednesday morning, as U.S. Natural Gas Futures fell. Demand and supply forecasts in north-west Europe were stable.
LSEG data revealed that the benchmark European gas contract - the front-month Dutch contract on TTF hub - was?down 1.67 euros to 37.95 euros for a megawatt hour (MWh), which is $11.03/mmBtu, at 0908 GMT.
The contract for March fell by 1,54 euros, to 36.26 Euro/MWh.
Prices continued to decline after Tuesday's partial recovery of feedgas for the Sabine Pass terminal (LNG). This was after the drop in U.S. Natural Gas Futures.
The United States has been the largest LNG supplier to Europe. A winter storm that has swept across the country disrupted LNG exports. Also, higher gas prices in America had surpassed European prices earlier this week.
On Wednesday morning, U.S. Natural Gas Futures were down by 8% to $6.40/mmBtu.
Wayne Bryan, LSEG's head of European Gas Research, said that "our latest data shows a continued recovery at Sabine Pass and Cameron LNG Terminals, but flows at a number of other terminals -notably Freeport - remain significantly lower than last week's level."
Weather developments and U.S. gas export uncertainty will likely remain the primary drivers for price direction in the days to come. Given the inherent risks and low inventories, he said that TTF prices would remain in the range of 38-40 euros/MWh.
The weekend and the next week are expected to be milder temperatures in north-west Europe, but wind and solar output will decline, increasing the demand for gas at power plants.
LSEG data shows that Germany's wind power generation will?remain above average until February 4 before dropping below normal?towards February 9'.
Data from the Commitment Of Traders on LSEG showed that investment funds have more than doubled their position in net long positions to 118.14 millions?last week.
The British front-month contract increased by 0.36 pence, to 101.65 cents per therm.
The benchmark contract on the European carbon markets was down 0.33 euro at 88.04 Euros per metric ton. Nina Chestney reports.
(source: Reuters)
