EUROPE GAS-European Gas Prices ease after Recent Gains

The British and Dutch gas price fell on Wednesday morning, after having risen more than 5% from the beginning of the week. This was due to the colder weather conditions and the attacks on Ukraine's gas infrastructure. Also, storage filling had slowed.

LSEG data shows that the benchmark Dutch front-month contract was 32.94 euros per Megawatt Hour (MWh) or $11.21/mmBtu at 0918 GMT. This is a decrease of 0.48 Euro.

The Dutch day-ahead contracts was down by 0.40 euros at 33.23 Euro/MWh.

The British gas front-month contract was down by 0.91 pence, at 84.50 p/therm. Meanwhile, the day-ahead price fell by 1.85 pence.

Analysts at Northern Gas and Power stated in a report that prices could be influenced by a forecasted very brief rise in temperature.

The report added that "Shipments to Asia of LNG have fallen to two-month lows, which could provide relief for buyers in Europe as well as offset any possible withdrawals from storage levels on our continent to help Ukraine."

Ukraine has said that it wants to increase gas imports from the initial 4.6 billion cubic meters (bcm), initially planned for 2025/26 heating seasons, by 30% due to damage caused to domestic production by increased Russian attacks.

Gas Infrastructure Europe's data shows that EU gas storage facilities were last 82.9% filled, compared to around 94.5% last year.

In his morning report, Arne Rasmussen, the chief analyst at global Risk Management, said that filling levels had slowed down in recent weeks. On Tuesday they even became net withdrawals.

Elengy, the operator of LNG terminals in France, said that strike action continued to affect operations at Fos Cavaou, Fos Tonkin and Montoir. The notices of restriction were extended by one day each at Fos Cavaou, Fos Tonkin and Montoir, as well as by two days for Fos Tonkin.

The benchmark contract on the European carbon markets was up 0.31 euros at 78.62 euro per metric ton. (Reporting from Nora Buli, Oslo; Additional reporting by Forrest Crellin, Paris; Editing done by Rashmi aich)

(source: Reuters)