EUROPE GAS - Prices fall further due to mild weather and solid supply
The Dutch and British wholesale prices of gas continued to fall on Friday morning, as the mild weather and stable supplies weighed heavily on the market. Also, the risk premiums related to the Middle East conflict dwindled.
LSEG data shows that the benchmark Dutch front-month contract for the TTF hub fell 0.80 euros to 33.00 Euro per megawatt hour or $11.33/mmBtu at 0813 GMT.
The contract has fallen almost 19% from the Friday's last traded price of 40.65 euro/MWh. This was boosted by fears about an escalating Middle East conflict, which have since abated after U.S. president Donald Trump brokered the ceasefire between Iran & Israel.
In a daily report, analysts at Engie EnergyScan stated that the "bearish momentum" was caused by the ease of tensions in Middle East.
The Dutch August contract is down 0.87 euros at 33.60 Euro/MWh.
The British day-ahead contracts was down 1,40 pence to 77.15p/therm.
Oleh Skrynyk, LSEG analyst, said: "We expect today's prices to trade in a bearish manner, under pressure from mild weather, strong supplies and limited upside catalysts."
LSEG data shows that the total Norwegian exports have remained stable at 315 millions cubic metres/day.
According to Engie EnergyScan, temperatures in central and west Europe are expected to be 6-10 degrees Celsius higher than normal early next week.
The benchmark carbon contract in Europe was down by 0.19 euros at 70.21 euro per metric ton. (Reporting by Susanna Twidale, editing by Nina Chestney.)
(source: Reuters)
