Prices of gas in Europe fall due to higher temperatures forecasts and technical selling
The benchmark British and Dutch wholesale gasoline prices dropped about 9% Monday, as the weather forecast showed warmer temperatures than expected. Technical selling also weighed heavily on the market after it had retraced its 'near seven-month high hit on Friday.
Data compiled by LSEG revealed that the benchmark Dutch front-month contract was down 3.54 Euros at 33.90 EUR per megawatt hour or $11.54 /mmBtu at 0916 GMT.
The contract reached its highest intraday level of 38.00 euros/MWh Friday, the highest since June 2025.
The Dutch March price fell by 3.39 euros on Monday to 35.88 Euros/MWh.
The British day-ahead contracts?was down by 9.1 pence to 100.1 p/therm.
Analysts at Energy 'Scan stated in a daily research note that although temperatures will be decreasing, "temperature predictions have been revised upwards for this week."
Prices were also under pressure from technical selling. According to LSEG, the relative strength index (RSI), of the Dutch front-month contract, rose above 70 at the end the week. This is a technical threshold that indicates a stock, or commodity, may be due for a correction downward.
?LSEG data revealed that the RSI fell below 70 at around 62 due to the session's fall in price.
Strong wind speeds in Britain are also expected reduce?gas consumption.
In a daily research report, LSEG analyst Saku Jussila said that the wind power forecast for Britain has significantly improved this week. It is now 'expected to be above normal levels.
Elexon data shows that the peak wind power in Britain is expected to?rise from 11.6 GW to 19.7 GW on Tuesday.
The benchmark contract on the European carbon markets was down by 2.41 euros, at 89.63 euro per metric ton.
(source: Reuters)
