EUROPE GAS - European prices drop as milder and windier weather returns
The Dutch and British gas price fell on Thursday morning, as the forecast for warmer weather and increased wind next week reduced demand.
LSEG data shows that the benchmark Dutch front-month contract was lower by 0.55 euros, or $9.44/mmBtu at 0947 GMT.
The Dutch day-ahead contracts was down by 0.38 euros to 27.85 Euros/MWh.
Gas prices in the UK for the day ahead fell by 2.25 pence, to 70.25 p/therm. The front-month contract also dropped by 1.75 pence, to 71.75p/therm.
Ulrich Weber, LSEG analyst, says temperatures in Britain and northwestern Europe will fall on Friday before quickly rising to levels that are much higher than normal.
He added that the wind power generation forecast for next week has improved, which will reduce gas demand in the power sector.
LSEG data revealed that the demand for local distribution zones (LDZs) in northwest Europe (which is largely related to heating) will fall from Thursday's 3,930 GWh/day to 2,702 GWh/day next week.
Non-LDZ Demand, which covers the demand in the power sector will fall from 3,446 GWh/day down to 2,616 GWh/day.
Gas Infrastructure Europe's data shows that EU gas storage facilities were 74.44% filled last month, compared to 84.65% last year.
According to the latest position data released on Wednesday, Arne Lohmann-Rasmussen is chief analyst of Global Risk Management.
He added, "We're now approaching a stage of short-term speculative position where the market is sensitive to positive news."
The benchmark contract on the European carbon markets was down by 0.38 euros at 81.41 euro per metric ton. (Reporting and editing by Janane Vekatraman; Nora Buli)
(source: Reuters)
