Dutch and British gas prices rose slightly on Monday morning, but continued to trade in a narrow range, as warmer weather softened demand for heating.

The benchmark Dutch front-month contract at the TTF hub (TRNLTTFMc1) was up 0.33 euros at 27.72 euros per megawatt hour (MWh), or $9.47/mmBtu, by 1012 GMT, but remained near to 19-month lows, LSEG data showed.

The Dutch day-ahead contract (TRNLTTFD1) was up 0.15 euros at 27.30 euros/MWh.

The British day-ahead gas prices rose by 0.80 pence to 68.60 pence per therm.

The latest temperature forecast is slightly higher for working days next week and local distribution zone demand, which includes domestic gas demand for heating, is expected down by 278 gigawatt hour per day on the day ahead at 2397 GWh/d due to lagged temperature response, LSEG data showed.

Total Norwegian imports were up by 5 million cubic meters per day over the weekend, possibly still due to production from Troll or Visund fields ramping up after maintenances ended last week.

“We expect another day of sideways trading as the fundamentals are still looking comfortable,” LSEG analyst Saku Jussila said in a daily research note.

Meanwhile, U.S. natural gas futures for January delivery rose on Friday by 4.5%, to settle at $5.289 per million British thermal units (mmBtu), their highest close since December 21, 2022.

Analysts at Engie’s EnergyScan said that an important question remains how much longer European gas prices could fall, particularly in a context where Henry Hub prices remain high, which reduces U.S. LNG exporters’ margins.

Weaker demand is expected to slow withdrawals from Europe’s gas stores.

Europe’s gas storage sites are 72.53% full, latest data from Gas Infrastructure Europe showed.

In the European carbon market, the benchmark contract (CFI2Zc1) rose 0.4 euro at 82.38 euros a metric ton.
Source: Reuters