Prices for EUROPE GAS are on the decline due to warmer temperatures forecasts and a solid supply

The benchmark Dutch and British wholesale prices of gas fell on Friday morning, as?warmer temperatures curbed the demand for gas and supplies of?liquefied gas remained high.

Data compiled by LSEG revealed that the benchmark 'Dutch - front-month contract' at TTF hub had fallen 0.30 euros to 34.76 Euro per megawatt hour (12.02 /mmBtu) by 0934 GMT.

This week, the benchmark contract fell by around 14% as a result of price drops in America due to freezing temperatures that had affected gas production.

We see the move down (lower) as overdone, given that winter risks are still skewed primarily to the upside and inventories are well below the five-year-average. "If cold weather risks materialise in the next few weeks, they will push European inventories down to historic lows by March," Energy Aspects analysts said.

The Dutch April rate was 32.33 Euro/MWh, down by 0.36 euros.

The British day-ahead contracts was down by 1.35 pence to 84.45?p/therm.

EnergyScan analysts said that prices were torn by the impact of high temperatures in many European countries and the impact of low stock levels of gas.

Gas Infrastructure Europe has revealed that Europe's gas storage tanks are currently 38.5% filled.

Gas supply was strong. LSEG data showed that the total?liquefied gas sendout to northwest Europe is expected to rise by 80 gigawatt -hours/day, to 2,179 GWh/d.

The benchmark contract on the European carbon markets was down by 0.53 euros at 77.67 euro per metric ton. (Reporting and editing by Nora Buli)

(source: Reuters)