Prices for gas in Europe are little changed despite maintenance in Norway and higher wind forecast
Dutch and British wholesale prices of gas were not much different on Monday morning. The gas balance was tightened due to maintenance in Norway but higher wind output is forecast.
LSEG data shows that the benchmark Dutch front-month contract for the TTF hub fell by 0.12 euro to 36.15 Euro per megawatt hour at 0844 GMT.
The British day-ahead contract was flat, at 85.70 cents per therm.
Analysts at Engie EnergyScan wrote in an early morning note that "overall, the European Gas Balance is expected to tighten this week with a decrease in net storage injections, which could increase the storage deficit."
Gas Infrastructure Europe reports that EU storage inventories are 50.97% full.
The consultancy Auxilione stated in a daily report that "the injection level must be maintained to ensure sufficient stock levels for the winter season by the end summer." We remain close to 2022's key trendline.
Auxilione analysts say that the lower energy demand in Asia following a monsoon season allows for a bit more flexibility when it comes to spot LNG headed towards Europe. This is useful during planned outages in Norway.
LSEG analyst Yuriy Oynyshkiv said that the demand for gas is expected to decline later this week as a result of warmer temperatures and forecasts for higher wind speeds.
He stated that there had been no change in LSEG’s fundamental balance forecast or the prompt contracts which would have justified a move out of the 35-36 euro/MWh range.
The benchmark carbon contract in Europe increased by 0.83 euros to 74.33 euro per metric ton. (Reporting and editing by Kevin Liffey; Marwa Rashed)
(source: Reuters)
