EUROPE GAS-Prices edge higher amid weak demand, Norwegian maintenance
Dutch and British wholesale prices of gas rose on Monday, after a fall on Friday. Warmer temperatures reduced demand while ongoing maintenance in Norway lowered supply.
LSEG data shows that the benchmark Dutch front-month contract was up 0.60 euros at 34.45 Euro per megawatt hour or $11.53/mmBtu at 0920 GMT.
The Dutch day-ahead contracts was up by 0.85 euros at 34.20 Euro/MWh.
The British day-ahead contracts was up by 1.85 pence to 81p/therm.
After the huge losses at the end last week, we are expecting less movement today. "The fundamentals have not changed significantly and we expect the prices to seek consolidation," said LSEG Analyst Ulrich Weber.
LSEG data shows that prices fell around 3.5% on Friday after U.S. president Donald Trump accused China for violating a deal aimed at rolling back tariffs. He also announced a doubling in his global steel and aluminum tariffs, causing more concerns about a trade war.
LSEG data shows that the total Norwegian export nominated volumes are down by 14 million cubic meters/day (mcm/d), compared to Friday's level.
Analysts say that any changes in Norway's schedule of maintenance could impact prices this week.
In a daily note, Auxilione stated that "as we enter the month of February, the Norwegian assets will be subject to a lot of planned maintenance which could result in up to 100 million cubic meters being taken off-line."
Gas Infrastructure Europe data shows that the need to refill Europe's gas storages, which are currently 48.3% filled, is still driving up prices.
The benchmark contract on the European carbon markets was up by 0.92 euros at 71.33 euro per metric ton. (Reporting by Susanna Twidale, editing by Nina Chestney).
(source: Reuters)
