Gas prices in Europe fall on forecasts of warmer temperatures
The benchmark British and Dutch wholesale gasoline prices fell on Tuesday morning as warmer temperatures forecasts reduced gas demand.
LSEG data show that the benchmark Dutch 'front-month contract' at?the TTF Hub was down 0.46 euros to 30.30 Euros per Megawatt Hour (MWh), or $10.54 /mmBtu by 0908 GMT.
The Dutch April rate was lower by 0.43 euros at 29.50?euros/MWh.
The British day-ahead contracts was down 0.75 pence to 73.00?p/therm.
The weather forecasts for Central and Western Europe have become a bit milder and more windy over the weekend. The temperatures in Germany, which is the biggest gas consumer in the EU, are expected rise slightly above the average this week, according to Mind Energy's daily research note.
The benchmark EU Allowance contract on the European carbon markets was up 0.42 euros at 69.92 euro per metric ton. The contract has, however,?fallen by around 20% since January after lawmakers such as the Chancellor of Germany Friedrich Merz suggested intervening on the market to help reduce the cost burden for European businesses.
The lower carbon prices has also affected the gas demand from gas-fired energy stations.
The analysts at Engie EnergyScan stated in a daily report that "the sharp?drop in EUA?prices has increased the competitiveness?of European coal-fired?power?plants in comparison to gas-fired?power plants, exerting downward pressure on gas demand for electricity generation."
(source: Reuters)
