Prices for gas in Europe are on the rise amid low storage levels

The benchmark British and Dutch wholesale gasoline prices increased on Thursday morning, as the market was supported by concerns about Europe's low storage levels and cold temperatures.

LSEG data shows that the benchmark Dutch front-month contract was 39.53 euros per Megawatt Hour (MWh), or $13.86/mmBtu at 0923 GMT. This is an increase of 0.53 Euro.

The Dutch March rate was 0.95 euros higher at 37.90 Euro/MWh.

The British day-ahead contracts was up by 1 pence at 101.5 p/therm

In a daily note, LSEG analyst Wayne Bryan stated that "given ongoing uncertainty and relatively low inventory levels, it is likely (front-month TTF prices) will remain supported at 38-40 euros/MWh."

Gas Infrastructure Europe has revealed that Europe's gas reserves are currently at 44% capacity, which is close to the?lowest levels for this time of year since 2022.

As a result of freezing weather in the U.S., liquefied gas production was curtailed.

Analysts at Mind Energy stated that the market appears to have stabilized at least temporarily following the massive increases in prices earlier this month.

Last year, more than 50% of EU LNG imports were from the United States as the EU sought to reduce its imports from Russia after the Russian invasion of Ukraine. EU Energy Commissioner Dan Jorgensen stated on Wednesday that President Donald Trump's move to seize Greenland was a "wake up call" for European governments to increase their energy security, and not replace one dependency with another.

The benchmark contract on the European carbon markets was 1.89 euros lower at 84.65 euro per metric ton.

(source: Reuters)