The price of gas in Europe has fallen as the milder weather reduces demand
Dutch and British wholesale prices of gas fell on Monday as a result of a weaker heating and electricity demand, despite stable supply.
LSEG data shows that the benchmark Dutch front-month contract was lower by 0.31 euros at 31.59 Euro per megawatt hour or $10.77/mmBtu at 0912 GMT.
The Dutch December contract is down by 0.24 euros at 31.99 Euro/MWh.
The British gas day-ahead price fell by 1.2 pence to 77.50 pence per therm.
Mind Energy analysts said that the current weather is mild and windy, which keeps the demand for electricity low.
LSEG data shows that the demand for local distribution zones, including heating, will be 299 gigawatt-hours/day lower for the day to come, at 2,591 GWh/d.
In a daily research report, LSEG analyst Saku Jussila said: "We expect sideways bearish trading today due to warmer weather and increased Norwegian flows towards continent."
LSEG data shows that the total Norwegian export nomina-tions are 11 million cubic meters/day higher, at 312 mcm/d.
Wind power is also expected to reduce gas consumption from power plants. Analysts at Engie EnergyScan predicted that wind power in Germany would exceed 40 gigawatts every day.
The benchmark contract on the European carbon markets was down by 0.45 euros at 77.85 euro per metric ton. (Reporting and editing by Harikrishnan Nair; Reporting by Susanna Twiddale)
(source: Reuters)
