EUROPE GAS-European gas prices stable near key technical support
Dutch and British gas contract prices were mostly firmer Tuesday. This was despite the fact that there are mild weather forecasts, and a steady supply of LNG and gas via pipeline.
LSEG data shows that the benchmark Dutch front-month contract was up 0.29 euro at 31.55 Euro per megawatt hour at TTF hub, or $10.74/mmBtu by 0940 GMT.
The price briefly fell to 31.14 euro/MWh, the lowest since October 3.
The Dutch day-ahead contracts was up by 0.40 euro at 31.35 Euro/MWh.
The British gas front-month price rose by 0.38 pence, to 79.22 p/therm. And the day-ahead was up 1.47 p/therm.
Wayne Bryan, LSEG’s principal of gas research, said that a short period of cooler temperatures and lower winds on Thursday had already lifted gas prices.
In a morning report, Arne Lohmann-Rasmussen, Global Risk Management's chief analyst, said that this level might be tested today.
He added that a 4% increase in U.S. gasoline prices on Monday might provide early support for TTF contract on Tuesday morning.
Daniel Hynes, senior commodity strategist at ANZ, said that despite the higher wind generation, it has still dampened gas demand, resulting in a small net injection into fuel inventories.
He added that the volume of gas being piped from Norway and Algeria has increased, and that weather forecasts indicating warmer temperatures will reduce heating demand until mid-November.
Analysts at Engie EnergyScan stated that the market appears to also believe there is no reason to be concerned as long as Europe continues receiving significant volumes of LNG.
Gas Infrastructure Europe's data shows that EU gas storage facilities were 82.79% full last month, compared to 95.21 % at the same point last year.
Claudio Ribeiro is the head of LNG trading at global commodities trader Vitol. He said that storages should be 35% full before winter.
The benchmark contract on the European carbon markets was up by 0.32 euros at 78.08 euro per metric ton. Nora Buli, reporting from Oslo
(source: Reuters)
