Dutch and British wholesale gas prices edged higher on Tuesday morning as forecasts for cooler temperatures lifted demand for gas.

The benchmark Dutch front-month contract at the TTF hub (TRNLTTFMc1) was up 0.09 euro at 33.10 euros per megawatt hour (MWh), or $11.43/mmBtu, by 0819 GMT, LSEG data showed.

The Dutch day-ahead contract (TRNLTTFD1) was up 0.10 euro at 32.85 euros/MWh

The British front-month gas price (TRGBNBPMc1) was up 0.36 pence at 81.67 pence per therm.

Local distribution zone demand, which includes home heating, is expected to rise by 52 gigawatt hours/day to 781 GWh/d for the day-ahead in Northwest Europe, LSEG data showed.

“This follows temperature forecasts indicating a slight dip of 0.5 degrees Celsius to 16.5 C,” LSEG analyst Dzmitry Dauhalevich said in a daily research note.

Norwegian exports continued to be curbed by maintenance and were forecast at 240 million cubic metres/day, down 7 mcm/d, LSEG data showed.
“Temperature will of course now become a key focus on the near term delivery contracts and will be a key driver of direction,” Auxilione, a consultancy, said in a daily research note.

The market will also be watching for more details of a gas supply deal after Hungary’s foreign minister said on Tuesday that he would sign a new long-term gas purchase agreement later in the day.

In the European carbon market, the benchmark contract (CFI2Zc1) was down 0.22 euro at 76.95 euros a metric ton.
Source: Reuters