EUROPE GAS-European prices extend decline as milder weather softens demand
The benchmark contract for Dutch and British gas fell a further 19 months on Wednesday afternoon as the?updated temperature?forecasts indicated milder weather.
LSEG data showed that the benchmark Dutch front-month contract was at its lowest intraday rate since April 2024, at 26.76 euros/MWh, or $9.12/mmBtu.
The Dutch day-ahead contract eased by 0.69 euros, to 26.66 Euro/MWh.
The British front-month gasoline price was down 0.60 pence to 68.90 cents.
Saku Jussila, LSEG analyst, said: "It is the mild weather in combination with a general looseness on the gas market."
She said that the latest weather forecasting shows milder temperatures for this time of year than usual from 17 December.
The strong gas supply also contributed to the negative sentiment.
Analysts at Engie EnergyScan stated that "on the supply side, Norwegian natural gas was flowing into Europe slightly over 340 million cubic meters/day this morning."
LSEG data shows that the amount of liquefied gas sent out was high as well, with an expected 2,176 gigawatt-hours/day, an increase of around 100 GWh/d compared to Tuesday.
Gas Infrastructure Europe reported that EU gas storage sites are currently 71.83 % full.
The benchmark contract on the European carbon market was down by 0.31 euros at 82.54 euro per metric ton. (Reporting and editing by Janane Vekatraman, Susanne Twidale and Marwa Buli)
(source: Reuters)
