Dutch and British wholesale gas prices edged lower early on Monday, as ample supply from Norway and from liquefied natural gas offset expectations colder weather across the continent would drive up demand.

Prices moved in a narrow range in thin trade ahead of the Christmas public holiday later in the week.

The benchmark Dutch front-month contract at the TTF hub (TRNLTTFMc1) was down 0.25 euros at 27.95 euros per megawatt hour, or $9.61 per mmBtu, by 0921 GMT, LSEG data showed.

The Dutch February price (TRNLTTFMc2) was down 0.18 euros at 27.70 euros per MWh.

The British day-ahead contract (TRGBNBPD1) was down 1.00 pence at 72.25 per therm.

“All market participants, including investment funds, seem to be in a wait-and-see position. While fundamentals are currently bearish, they are all aware that some risk factors particularly on the U.S. supply side could reverse the trend if prices continue to fall,” analysts at Engie’s EnergyScan said in a morning note.

Europe’s gas storage sites are 67.24% full, the latest data from Gas Infrastructure Europe showed.

As the continent enters winter with lower storage levels than in recent years, buyers may be compelled to step up LNG procurement in January and February, said Aly Blakeway, manager of Atlantic LNG at S&P Global Energy.

In the European carbon market, the benchmark contract (CFI2Zc1) was 0.13 euros lower at 86.92 euros a metric ton.
Source: Reuters