EUROPE GAS prices steady on forecast higher temperatures despite US Cold Snap concerns
The benchmark Dutch and British wholesale prices of gas were unchanged on Friday due to a warmer than expected February forecast. However, concerns remain about cold temperatures in the U.S.
LSEG data shows that the benchmark Dutch front-month contract was up 0.29 euros at 38.51 Euros per megawatt hour or $13.24 /mmBtu by 1023 GMT.
The Dutch March rate was up 0.02 euros at 36.37 Euro/MWh.
The British front-month contract increased?0.3 pence to 100.65 p/therm.
Saku Jussila, LSEG's analyst, said in a daily?"research note" that the latest temperature forecast for Northwest Europe has been adjusted to warmer?weather during the first week of Feb. U.S. Gas prices rose a record 63% in three days to a six-week peak on Thursday, based on predictions that the extreme cold expected over the next two week will increase heating demand. Cold weather in some parts of the U.S. is causing concern about possible disruptions to feedgas supplies?to LNG terminals in that region.
"U.S. Natural gas prices played a major role in tightening the overall?sentiment. Henry Hub (U.S. Gas) has surged over the last week, fueled?by a traditional winter squeeze and not by a change in fundamentals long-term," said SEB commodities analysts?Ole R. Hvalbye. The International Energy Agency announced on Friday that Europe will import a record amount (of LNG) this year.
The benchmark contract on the European carbon markets was up 0.62 euros at 89.09 euro per metric ton. (Reporting by Susanna Twidale, Editing by Harikrishnan Nair).
(source: Reuters)
