Dutch and British wholesale gas prices fell on Tuesday morning as mild temperatures curbed gas demand, while supply remained stable.

The benchmark Dutch front-month contract at the TTF hub was down 0.38 euro at 31.63 euros per megawatt hour (MWh), or $10.89/mmBtu, by 0828 GMT, LSEG data showed.

The Dutch November contract was down 0.4 euro at 32.10 euros/MWh.

The British November gas price was down 1.03 pence at 82.72 pence per therm.

For Northwest Europe, “the latest (weather) forecasts have again come in warmer overall, even for the upcoming few days by about 0.2 degrees Celsius and some 0.5 C during the weekend and next week,” LSEG analyst Ulrich Weber said in a daily research note.

Strong wind power also led to lower demand for gas from gas-fired power plants in Britain.
“Wind power generation (in Britain) is now increasing consistently to above normal until the end of the week,” Weber said.

Peak wind power in Britain was forecast at 8.4 gigawatts on Tuesday rising to 12.1 GW on Wednesday, Elexon data showed.
Liquefied natural gas supplies to Europe remained strong.

“In addition to strong LNG deliveries to Europe, these ongoing Arctic LNG 2 deliveries continue to exert downward pressure on European gas prices,” analysts at Engie EnergyScan said.

Flows of Russian LNG to China are expected to lead to lower competition from China for cargos from other suppliers, dampening prices.

In the European carbon market, the benchmark contract (CFI2Zc1) was down 0.03 euro at 76.12 euros a metric ton.
Source: Reuters