EUROPE GAS Prices fall on profit-taking and mixed temperatures outlook
Dutch and British wholesale prices of gas fell on Tuesday morning due to profit-taking. Prices had reached a new 15-month-high on Monday, amid mixed weather forecasts for this week.
According to LSEG, the benchmark front-month contract for the Dutch TTF Hub was lower by 0.65 euros at 53.10 Euro per Megawatt-hour (MWh) or $16.10/mmBtu at 0925 GMT.
On Monday, the contract reached its highest intra-day level of 54.61 euro/MWh. This is its highest level since November 2023.
Engie EnergyScan analysts said that prices fell on Tuesday due to profit-taking, but the market is still strong.
The Dutch April contract is down by 0.45 euros at 53.20 Euro/MWh.
The front-month contract in Britain fell by 1.15 pence to 129.9 pence per therm.
LSEG analysts said that temperatures in Northwest Europe are expected to increase by around 2 degrees Celsius on Wednesday, but will then cool down towards the end the week.
Ulrich Weber, LSEG analyst, said that "Temperature Forecasts still limit the downside because the duration of this cold spell is uncertain."
Gas Infrastructure Europe data shows that Europe's gas storage tanks are currently 52.65% filled.
Analysts at Auxilione, a consultancy, said that "colder temperatures will be expected in the coming week, lower than normal seasonal levels. This is likely to put further pressure on EU gas supplies."
The benchmark contract on the European carbon markets was down by 0.33 euros, at 80.63 euro per metric ton.
(source: Reuters)
