The Dutch prices of gas are falling, but the storage subsidy remains.

Dutch wholesale gas prices eased Monday morning, a slight correction following last week's gains. However, the need to replenish storage before winter continues to support them.

LSEG data shows that the benchmark Dutch front-month contract was lower by 0.20 euro at 33.30 Euro per megawatt hour or $1.39 per mmBtu at 0916 GMT.

The contract for the day-ahead was down by 0.10 euros at 33 euros/MWh.

Due to a Bank Holiday, the British market will be closed.

Kasper Sander-Nielsen, senior analyst at Mind Energy said that prices rebounded from a 15 month low last week, as the losses experienced earlier in August had been likely exaggerated, and peace hopes in Ukraine have once again faded.

He added, "We still expect Europe will reach its goal of 90% storage capacity by November. The market is retreating early on Monday."

Gas Infrastructure Europe's data shows that EU gas storage facilities were 75.6% full at last sight, compared to 91% in the previous two years.

Data from infrastructure operator Gassco shows that the number of Norwegian gas flow nominations to Europe has increased from 308 million cubic meters per day on Friday, to 319 mcm/day Monday.

The prices are expected to fall sharply at the end of this week due to planned maintenance on several fields and processing facilities.

Daniel Hynes is a senior commodities strategist with ANZ Bank. He said that the demand for liquefied gas (LNG), in Asia, was increasing to replenish storages after a long, hot summer.

Europe and Asia compete for the lowest price of LNG shipped, with rising demand in a region usually supporting prices on rival markets.

The benchmark contract on the European carbon markets was up 0.65 euros at 71.88 euro per metric tonne. Nora Buli, reporting from Oslo; Jan Harvey, editing)

(source: Reuters)