Prices for gas in Europe are on the rise due to low storage levels
The Dutch and British wholesale prices of gas rose slightly on Friday morning after falling to a 18-month low Thursday, as weaker storage levels supported the price increase.
LSEG data shows that the benchmark Dutch front-month contract was up 0.33 euros at 29.35 Euro per megawatt hour or $9.96/mmBtu at 0929 GMT.
The contract reached an intra-day minimum of 28.85 euro/MWh on Friday, its lowest levels since May 20,24. This was due to weak demand and the hopes that a peace agreement in Ukraine would be signed.
The Dutch January rate was 29.40 Euros/MWh on Friday, up 0.17 euros.
The British day-ahead contracts was up by 1.6 pence to 76.50p/therm.
In a daily note, LSEG analyst Dzmitry Dauhalevich stated that the risk of a colder Winter remains in the market. Europe's storage sites for gas are around 9% less than they were at this time last.
Gas Infrastructure Europe has revealed that Europe's storage sites for gas are currently 77.2% filled.
The market is still weak, but not fundamentally.
In a daily report, analysts at Mind Energy stated that "in Germany, Europe's biggest gas consumer, temperatures will be above average for the next two-weeks, and the prospect of mild winter weather continues to weigh both on the day-ahead and futures markets."
LSEG data show that Norwegian gas exports are strong. They were nominated to be 336 million cubic meters a day yesterday, and liquefied gas supplies have also been steady.
The benchmark contract on the European carbon markets was 0.48 euros higher, at 82.65 euro per metric ton. (Reporting and editing by Susanna Twiddale)
(source: Reuters)
