The price of gas in the Netherlands and UK is falling as Norwegian supplies rise.
Dutch and British wholesale prices of gas fell on Monday morning, as the supply was strong and demand was rising due to warmer temperatures in much of Europe. However, this demand was offset by a weaker heating demand.
LSEG data shows that the benchmark Dutch front-month contract for the TTF hub fell 0.55 euros to 32.35 Euro per megawatt-hour or $11.11/mmBtu at 0802 GMT.
The Dutch August contract is down by 0.57 euros at 32.88 Euro/MWh.
The British front-month contracts were down by 1.1 pence to 75.50p/therm.
As maintenance is reduced, the gas supply from Norway has increased.
LSEG data revealed that the total Norwegian export nominated volumes increased by 14 million cubic meters/day (mcm/d), to 319 mcm/d.
In Europe, demand is still weak. However, the extreme heat will increase cooling demands in the electricity sector. In spite of strong solar, more gas is needed as wind generation is low. This was stated by LSEG analyst Ulrich Weber in a daily report.
Met Office forecast temperatures to reach 34 degrees Celsius on Monday in certain parts of Britain, close to the record for the hottest day of June, 35.6C, set back in 1976.
Over the weekend, temperatures in Europe reached over 40C, including in Italy, Spain, and Greece.
In a daily note, Engie EnergyScan analysts said that the risk was most pronounced on Tuesday and Wednesday when temperature anomalies rose to 8degC over normal.
The benchmark carbon contract in Europe was down by 0.71 euros at 70.25 euro per metric ton. (Reporting by Susanna Twidale, Editing by Saad sayeed)
(source: Reuters)
