The Dutch prices of gas have fallen due to a strong supply and higher wind output
Dutch wholesale gas prices fell on Monday morning, as the supply from Norway increased and wind power production rebounded. This reduced demand for gas by power stations.
LSEG data shows that the benchmark Dutch front-month contract was 33.65 euros per Megawatt Hour (MWh), or $11.48/mmBtu at 0820 GMT. This is a decrease of 0.73 Euro.
The Dutch day-ahead contracts was down 0.68 euros at 33.15 Euro/MWh
The British day-ahead contracts remained unchanged at 79.75 cents per therm.
In a daily note, LSEG analyst Dzmitry Dauhalevich stated that "On the supply-side, a slight increase in Norwegian flow is expected once Troll (gasfield) production has been restored after the maintenance is completed tomorrow."
LSEG data show that the total Norwegian exports have increased by 12 million cubic meters/day (mcm/d), to 321 mcm/d, compared with Friday. Maintenance has also eased.
The arrival of the Tessala tanker, which is scheduled to arrive on Monday, will boost supply in Britain.
The demand for gas has also been reduced in Europe due to the expectation of a stronger wind energy output.
In a daily market report, Engie EnergyScan analysts said that wind power generation in Germany is expected to be high for the next two weeks before decreasing toward the end the week.
The benchmark contract on the European carbon markets was up by 0.31 euros at 70.20 euro per metric ton. (Reporting and editing by Nina Chestney; Susanna Twidale)
(source: Reuters)
