EUROPE GAS - Prices stable but weather and low storage could support.
The Dutch and British wholesale prices of gas were mostly stable on Friday morning, despite the mild weather. However, a forecast for a cooler climate next week as well as the need to replenish storages in the coming months will continue to support the price.
LSEG data shows that the Dutch front-month contract rose 0.10 euros to 41.10 Euro per megawatt hour or 12.98/mmBtu at 0914GMT.
The Dutch day-ahead contracts was down 0.50 euros at 40.50 Euro/MWh.
The British day-ahead contracts rose by 0.02 pence, to 98.00 p/therm. Meanwhile, the weekend contract increased 0.45 pence and now stands at 97.25.
LSEG data shows that temperatures are expected to be milder than usual early next week, but will then drop to normal or slightly below it.
Ulrich Weber, LSEG's analyst, said that the gas sent out from liquefied gas terminals (LNG) in Belgium and France fell below expectations.
He added: "Overall, our two-week account balance has flipped from net injections (TWhs) of 4 to withdrawals (1.7 TWhs). This is a bullish shift."
Both Russia and Ukraine claim that the other party is continuing to attack energy infrastructures including the Sudzha gas hub, despite promises of a 30-day truce on such targets.
Gas Infrastructure Europe data shows that EU gas storage inventories are currently 33.6% full.
Daniel Hynes senior commodities strategist from ANZ stated in a report that "Storage is likely to drop below 30% by April. This will be significantly below historic levels."
He said that restocking Europe's natural gas stores will be difficult, as there are still few prospects of Russian pipeline gas returning, increasing reliance on LNG.
The benchmark carbon contract in Europe increased by 0.39 euros to 68.93 euro per metric ton. Nora Buli, reporting from Oslo; Nina Chestney, editing)
(source: Reuters)
