Prices for gas in Europe are lower due to a revised forecast but concerns about supply persist.
The Dutch and British wholesale gas prices fell slightly on Tuesday morning due to small changes in weather forecasts. They had risen more than 2% on Monday, mainly because of colder forecasts.
LSEG data shows that the benchmark front-month contract for the Dutch TTF hub fell by 0.09 euros to 39.90 Euro per megawatt hour at 0756 GMT.
The Dutch day-ahead contracts was down by 0.21 euros at 39.67 Euro/MWh.
The day-ahead contract in the British market was down by 0.10 pence, at 99.00 pence/therm, and the front-month contract was also down by 0.50 pence, at 99.90 pence/therm.
Ulrich Weber, LSEG's analyst, said that the weather forecasts had become a bit warmer, and the wind power forecasts also improved for the rest of this week and the next, reducing demand for gas from power plants and for heating.
He added that prices rose on Monday due to a revised colder weather forecast for Europe and some Norwegian gas shortages announced for November.
Analysts at ING stated in a report that tensions in the Middle East - a major hub for LNG supply - continued to support gas markets.
While the market is concerned about possible LNG supply disruptions as a result of the escalation that has occurred in the region, European Fundamentals remain comfortable," the analysts added.
Analysts at ING said that European storages are around 95% full - above the average for this time of the year of 92%. However, they will not reach 100% before heating season begins.
TotalEnergies warned that the project delays will delay the arrival of the next LNG wave until 2027. This is later than the original forecast of 2025.
This is nothing new. This just confirms what we already knew: the potential period of tightness on the LNG market will be 2025-2026.
They added that the delays coincided with the anticipated end of Russian gas transport through Ukraine to Western Europe at the end of the year.
Egypt, which was previously an LNG exporter, is also expected to increase its demand for LNG.
The benchmark contract on the European carbon markets was down by 0.16 euros at 61.60 euro per metric ton.
(source: Reuters)
