EUROPE GAS-European Gas Prices Rise on Colder Weather Demand
Dutch and British gas rates posted modest gains on Thursday, but it is expected that they will remain flat as the 'increased demand due to colder weather' can be easily met through pipelines and liquefied natural gas deliveries.
LSEG data shows that the benchmark Dutch front-month contract was 27.57 euros per Megawatt Hour (MWh) or $9.48/mmBtu at 0907 GMT. This is an increase of 0.19 euros.
The Dutch day-ahead contracts was up by 0.41 euros to 27.36 Euro/MWh.
The British day-ahead price of gas was 0.90 pence higher at 71.00 pence/therm. Meanwhile, the front-month contract for gas was 0.62 pence higher at 72.90 pence/therm.
Georg Mueller, a LSEG weather expert, said that the weather will be mostly dry and gradually colder towards the end next week with temperatures below normal.
He added, "This pattern appears to be stable and is likely to last until early January."
Analysts at Engie EnergyScan stated in a note that prices appeared to have reached the limit of their ability to decline further. However, a 'comfortable LNG balance' prevented a true rebound.
Freeport LNG, a key U.S. exporter of liquefied gas, was on schedule to receive more gas on March 13, a sign that the plant's three liquefaction train had been reactivated after being shut down on February 14.
Data from Gassco, the infrastructure operator, showed that Norwegian pipeline gas to Europe reached 348.8 mcm/day, its highest level since August 2024. On Thursday, it was 347.6mcm/day.
Analysts at ING stated that the latest?positioning data showed that speculators were increasingly bearish on TTF. Investment funds built their largest net-short positions?since early 2019.
They added that "it continues to pose a risk to market should there be any disruptions in supply or surges in demand."
Gas Infrastructure Europe's data shows that EU gas storage sites are currently 68.75% filled, down from 77.5% last year.
The benchmark contract on the European carbon markets was down by 0.81 euros at 85.99 euro per metric ton. (Reporting and editing by Joe Bavier; Nora Buli)
(source: Reuters)
