Dutch and British gas prices fell slightly, trading in a narrow range on Tuesday morning, as stable supply from Norway and from liquefied natural gas (LNG) offset a cooler weather outlook.

The benchmark Dutch front-month contract at the TTF hub was down 0.23 euro at 26.78 euros per megawatt hour (MWh), or $9.22/mmBtu, by 0930 GMT, data compiled by LSEG showed.

The Dutch day-ahead contract was down 0.20 euro at 26.95 euros/MWh.

The British day-ahead contract was down by 0.50 pence at 70.50 pence per therm, while the front-month contract was down 1.04 pence at 71.46 p/therm.

Temperatures are seen cooler during the working days next week. Local distribution zone (LDZ) demand, which largely reflects heating demand, is slightly higher but is offset by gas for power demand which is nearly double the LDZ increase, said LSEG gas research principal, Wayne Bryan.

“Supply remains ample, supported by LNG and increased Norwegian deliveries. Our balance looks comfortable with any demand ramp-up to be met by imports and storage withdrawals…any positive developments regarding Russia–Ukraine peace talks could add downside pressure,” Bryan said.

Gas demand for power generation is up as wind speed forecast has dropped across Northwest Europe.

Analysts at Engie’s Energy Scan said in a morning note that the bearish fundamentals are preventing any real rebound.

EU gas storage sites were last 69.75% full, compared with 78.28% at the same time last year, Gas Infrastructure Europe data showed.

In the European carbon market, the benchmark contract was up 0.26 euro at 87.54 euros a metric ton.
Source: Reuters