EUROPE GAS-Prices trade at narrow range amid mild weather forecast and low demand

Dutch and British wholesale price rose slightly, but were contained to a small range on Monday morning due to lower demand.

LSEG data shows that the benchmark front-month contract for the Dutch TTF hub increased by 0.87 euros to 40.22 Euro per megawatt hour at 0934 GMT.

The contract for December was 0.25 euros higher, at 40.00 Euro/MWh.

The day-ahead contract in the British market was up 2.25 cents at 98.50 pennies per therm.

In a morning note, Ulrich Weber, LSEG's analyst, said that "the warmer forecast will have the biggest impact today and lead to a bearish mood."

LSEG data shows that the average temperature in Northwest Europe was 4 degrees Celsius higher than the normal seasonal average. The weather will remain mild through October.

The Norwegian gas production is now back at normal levels after several weeks of maintenance.

Weber, LSEG's CEO, said that the rising trend in Norwegian gas supplies during the last two weeks will likely continue.

The flow is now as high as it was in mid-August before the main maintenance on the Norwegian Continental Shelf began. Next weekend, the next improvement in flows is expected.

Daniel Hynes is a senior commodity strategist with ANZ. He said that the flow of LNG from terminals in Northwest Europe has reached its highest level since April.

The benchmark contract on the European carbon markets was up by 0.36 euros at 62.64 euro per metric ton.

(source: Reuters)