Prices for EUROPE GAS are down due to the warmer weather.

Dutch wholesale gas prices fell on Monday, following a decline in the previous trading day. Warm weather forecasts lowered demand.

By 0926 GMT, the Dutch contract for the first month was down 1,58 euros to 31.73 euros per megawatt hour. The contract for April is down 1.51 euros, at 31.4 Euro/MWh.

The outlook for today is further price weakness. Weather model updates for the weekend were bearish. Temperatures are now expected to 'be notably higher near term, and extend through the first 'two weeks of march, said Wayne Bryan, LSEG Gas Research Principal.

This has led to a drop in the demand forecasts. The local distribution zone, which is referring to the gas?demands for heating, have been seen as dropping by about 380 gigawatt hours per day.

Fundamentals are still comfortable on the supply side. Norwegian exports have recovered, and the maintenance outlook for the next two week is stable, which limits the risk of unplanned interruptions. Bryan also said that the LNG supply had increased.

The geopolitical risks remain, and there are plans for further U.S. Iran discussions, but the risk premium in the short term has decreased.

Reports on Friday said that Iran is willing to make concessions in its talks with the U.S.?in exchange for a?lifting of sanctions?and recognition of its right?to enrich uranium?as it seeks?to?avoid a U.S.attack?.

The day-ahead contract in?the British Market was down 3.75 pence at 76.50 pence per?therm. Meanwhile, the front-month was down 0.33 pence at 77.30?pence per?therm.

The benchmark carbon contract in Europe was down by 1.29 euros, at 72.49 euro per metric ton. (Reporting and editing by Jan Harvey; Marwa Rashed)

(source: Reuters)