Gas prices in Europe are falling amid steady supply
The wholesale gas price in the Netherlands and Britain fell on Friday morning. Prices have been falling from recent highs of three weeks, thanks to a steady supply that helped offset cooler temperatures.
The benchmark front-month contracts
The contract for November was down by 0.23 euros, at 38.02 Euro/MWh.
The front-month contract on the British market was 90 pence per unit, 0.50 pence less.
LSEG data indicated that total exports to Norway would be 7 million cubic meters (mcm), or 277 mcm/day higher than the previous day.
Gas supplies to Europe via Ukraine from Russia remained stable and the flow of gas through the Britain-Netherlands pipeline was also restored following maintenance.
Gazprom, a Russian gas company, said that it would send the same amount of gas via Ukraine to Europe on Friday as it did on Thursday.
The temperatures are predicted to drop next week, which will increase gas demand. However, prices have not corrected after reaching a three-week peak of 38.15 euro on Wednesday last week.
Prices are dropping this morning due to profit-taking. "But it's not certain this will last, because the short-term trend appears bullish," said analysts at Engie EnergyScan.
Energy Aspects analysts also predicted that prices would rise as the winter season approaches.
Energy Aspects stated in a recent research note that the Dutch TTF should be priced high enough to mitigate the seasonal increase of power sector gas consumption and to attract LNG spot supply from Asia in order to avoid reducing end-March 2025 stock levels too quickly.
Gas Infrastructure Europe's data shows that European storages are 94% full.
The benchmark EU carbon permit contract fell 0.80 euros to 65.72 Euros per metric tonne.
(source: Reuters)
