Prices of EUROPE GAS are down from their two-year-highs, but storage issues remain

The Dutch and British wholesale prices of gas fell from their two-year highs, but the lower temperatures and concerns about storage levels were the main reasons.

According to LSEG, the benchmark front-month contract for the Dutch TTF Hub was down by 1.21 euros at 57.05 Euros per Megawatt Hour (MWh), which is $17.25/mmBtu as of 0922 GMT.

On Monday, the contract reached its highest intra-day level of 58.51 euro/MWh. This is its highest since February 2023.

The Dutch April contract is down by 1.09 euros at 56.90 Euro/MWh.

The front-month contract in Britain was down 3.12 pennies at 139.18 p/therm.

Analysts at Auxilione say that "colder temperatures forecasts, and a concern about gas storage levels is driving concerns regarding refilling plans next winter."

Analysts said that there is no ceiling on prices, and they could rise even further.

Analysts said: "In the interim, we could have days of retracement... while a further upward thrust is in motion."

Gas Infrastructure Europe data shows that Europe's gas storage tanks are 48.48% filled.

Greg Molnar of the International Energy Agency said that the EU storage levels could fall below 40% at the end of the heating season. This would mean that Europe will need to inject 55 billion cubic metres (bcm) of gas this summer in order to reach its 90% target.

The benchmark contract on the European carbon markets was down by 0.85 euros at 82.11 euro per metric ton.

(source: Reuters)