Dutch and British gas contracts on Friday gave up gains from the previous session driven by concerns over the impact of sanction on Russian energy supply, with no changes to the short-term supply and demand picture.

The benchmark Dutch front-month contract at the TTF hub (TRNLTTFMc1) was down 0.40 euros at 32 euros per megawatt hour (MWh), or $10.89/mmBtu, by 1018 GMT, LSEG data showed.

The Dutch day-ahead contract (TRNLTTFD1) was down 0.10 euros at 32.20 euros/MWh.

The British front-month gas price (TRGBNBPMc1) fell by 1.29 pence to 80.43 pence per therm, while the day-ahead (TRGBNBPD1) contract was up 0.30 pence at 78.20 p/therm.

Contracts have given up their gains from Thursday following agreement to ban Russian liquefied natural gas imports (LNG) by 2027, and U.S. sanctions on Russia’s oil majors.

The market made too much of those news and the move upward was overdone, a trader said, adding the overall market outlook was little changed.

Lower wind from the end of the month could provide some support and ultimately impact storage levels, he added.

The following days will see cooler than normal, but wet and windy weather, before turning milder and less windy again by the middle of next week, LSEG meteorologist Georg Mueller said.

EU gas storage sites were last 82.8% full, down from 95.3% at the same time last year, Gas Infrastructure Europe data showed.

Higher gas demand from the power sector has seen early withdrawals from storage this October, LSEG analysts said.

“As a result, aggregated storage levels in Northwest Europe (NWE) are now projected to reach 79% fullness by November 1 – a significant downgrade from our earlier expectation of 90% ahead of winter,” they said in a monthly report.

This could see storage stocks fall to 36% by the end of winter under the base case and to a record low of 7% in a cold scenario, they added.

In the European carbon market, the benchmark contract (CFI2Zc1) was up by 0.04 euro at 78.48 euros a metric ton.
Source: Reuters