Prices of gas in Europe rise due to tighter supply
Due to maintenance issues and limited supply, wholesale gas prices in the Netherlands and Britain rose on Tuesday morning.
LSEG data shows that the benchmark Dutch front-month contract rose 0.99 euros to 36.19 Euro per megawatt hour at 0830 GMT.
The British contract for the month of June increased by 2.20 pence, to 86.61 cents per therm.
Oleh Scrynyk, LSEG analyst, predicted that both British and Dutch gas prices would be on the rise, due to tight supply, maintenance risks and a forecast of colder temperatures.
LSEG data shows that Norwegian flows into Britain have dropped by 23 million cubic meters (mcm), to 41 mcm/day, due to some rerouting to France.
The 21-22 May maintenance outages scheduled at Norwegian gas processing plants and fields will also add to the bullishness.
LNG exports are expected to decline, despite the increase in Norwegian LNG flows to continental Europe.
The average temperature in north-west Europe is expected to drop from 15.8C today to 11.2C at the end of this week before increasing again next week.
The wind power generation will continue to be stronger than usual until the early part of next week.
After a phone call with Donald Trump, the U.S. president, Russian President Vladimir Putin said on Monday that Moscow is ready to work on a memo about a future accord of peace with Ukraine and that the efforts to end war in Ukraine are on the right path.
The benchmark contract on the European carbon markets was up by 1.33 euros at 71.75 euro per metric tonne. Nina Chestney reports.
(source: Reuters)
