Gas prices in Britain are down due to warmer temperatures and more wind
The British wholesale gas price dropped on Thursday, as the warmer temperatures and increased wind power are expected to arrive on Friday. Meanwhile, the Dutch equivalent fell.
LSEG data show that the British gas front-month price fell 5% or 3.95 pence to 74.50 p/per therm by 0852 GMT.
LSEG data shows that power demand in Britain will fall by 3.6 gigawatts on Friday, as temperatures are expected to increase 4 degrees Celsius in Britain to 13.2 degrees Celsius.
LSEG data shows that the wind supply in Britain increased by 5.6 GW, to 14.7 GW, on Friday.
In a daily note, Ulrich Weber, LSEG's analyst, said that the weather should remain mild for the next two week.
He added that the wind power generation has seen a change to calmer conditions in the coming week and thereafter, even though Germany's generation levels remain near normal.
LSEG data shows that the benchmark Dutch front-month contract for the TTF hub has dropped 0.1 euros to 31.65 euros/MWh or $10.77/mmBtu.
The Dutch December contract is slightly lower at 31.53 Euros/MWh.
Analysts at Engie EnergyScan stated in their daily research note that European gas storage plants switched from net injection mode to net withdrawal on Wednesday. Net withdrawals are expected to continue on Thursday.
The benchmark contract on the European carbon markets was up by 0.38 euros, at 79.17 euro per metric ton.
U.S. sanctions against Russian oil producer Rosneft rekindled German discussions about nationalising its business, including the refinery on which Berlin relies for the majority of its fuel. Two sources familiar with these talks said that the U.S. sanctions had prompted the discussion.
(source: Reuters)
