Prices for gas in Europe are little changed, as the cooler weather increases demand
Dutch and British gas traded in a narrow band on Monday morning after rising the previous two sessions. Cooler weather supported higher gas demand, and a sharp fall in wind speeds boosted gas demand for electricity generation. But stable supply limited gains.
Data compiled by LSEG revealed that the benchmark Dutch front-month contract was down by 0.04 euros at 27,46 euros per megawatt (MWh) or $9.45/mmBtu by 0958 GMT.
The Dutch day-ahead contracts was nearly flat at 27,50 euros/MWh.
The British day-ahead contract rose by 0.73 pence to 71.43 pence/therm. However, the front-month contract fell 1.01 pence to 72.30 pence/therm.
This week, temperatures are expected to be cooler. The LDZ (local distribution zone)?demand is expected to increase by?23 gigawatt-hours?per day, to 3618 GWh/d, on Thursday. The supply side should slightly offset the bullishness of demand growth, with a continued strong supply coming from Norway and LNG, said LSEG Gas Research Principal Wayne Bryan.
As wind speed forecasts have dropped in Northwest Europe, gas demand for electricity generation has increased.
The analysts at Engie's Energy Scan stated that a significant price rise is unlikely right now, given the comforting European gas fundamentals and the strong LNG flows.
Gas Infrastructure Europe's data shows that EU gas storage facilities were last 69.61% full, compared to 78.76% last year at the same point.
The benchmark contract on the European carbon markets was up by 0.83 euros at 84.62 euro per metric ton.
(source: Reuters)
