EUROPE GAS - European benchmark gas hits new intraday low of 18 months on milder outlook
As the milder weather has lowered demand for heating, and as markets await any progress in U.S. led Russia-Ukraine talks, the European benchmark contract reached its lowest intraday price in over 18 months on Sunday morning.
LSEG data shows that the benchmark Dutch front-month contract was at its lowest intraday price since May 15, 2024, at 28.05 Euro per megawatt hour or $9.55/mmBtu.
The Dutch February electricity price fell by 0.53 euros to 28.22 Euro/MWh.
The British day-ahead contracts was down 2.45 pennies at 72.85 pence per therm.
LSEG data shows that temperatures in Northwest Europe will remain normal this week with an average temperature of 5 degrees Celsius. Next week, however, is expected to be much milder, with temperatures averaging 6.8 degrees Celsius.
According to LSEG, the local distribution zone demand (which refers to the domestic gas heating demand) is down 73 gigawatt hours per day to 3777 GWh/d for the day ahead.
The market was kept relaxed by the mild weather forecast. The US-led Russia and Ukraine peace talks also set a negative tone, even though progress appears slow, with expectations of the impact on European gas markets limited.
Weber stated that "the milder outlook for most of December will set a negative backdrop for the future price development."
Gas Infrastructure Europe has released the latest figures showing that Europe's storage sites for gas are only 75,75% full. This is 11.6% less than a year earlier when it was 85,74%.
The wind power generation is normal for today and tomorrow but will drop significantly from Wednesday to Friday.
The benchmark contract on the European carbon markets was 83.28 Euros per metric ton.
(source: Reuters)
