Gas prices in Europe fall on the back of stronger forecasts
The Dutch and British wholesale gas price fell on Thursday morning as a result of profit-taking and forecasts for stronger wind power generation.
LSEG data shows that the benchmark Dutch front-month contract was 34.28 euros per Megawatt Hour (MWh) or $11.45/mmBtu at 0804 GMT. This is a 0.10 euro decrease.
The Dutch September contract is down by 0.13 euros at 34.82 Euro/MWh.
The British front-month contract fell by 0.54 pence to 82.35 cents per therm.
"Technically the market seems poised for a possible downward correction," said Yuriy Onieshkiv of LSEG.
Prices are facing strong resistance following three days of consecutive gains. A slightly lower demand due to stronger wind generation could also exert modest bearish force, he said.
Elexon data shows that the peak wind generation in Britain will be 8.1 gigawatts tomorrow and 10.7 GW on Thursday.
A stronger wind output reduces the demand for gas at power plants.
Norwegian exports remain stable. The North-West Europe LNG send-out is down due to a drop in nominations for the Gate LNG terminal, located in the Netherlands.
The benchmark contract on the European carbon markets fell by 0.10 euros to 72.76 euro per metric ton. Nina Chestney reports.
(source: Reuters)
