Prices for gas in Europe are not much different despite the cold weather forecast

Analysts said that the Dutch and British wholesale prices of gas were not much different on Thursday, but could rise due to forecasts for colder weather conditions and reduced wind speeds.

By 0922 GMT, the benchmark front-month contract for the Dutch TTF hub had fallen by 0.10 euros to 46.41 Euro per megawatt hour or MWh (or $14.60/mmbtu).

The Dutch day-ahead contract fell 0.20 euros, to 46.40 Euros/MWh.

The day-ahead contract in Britain fell 1.15 pence, to 115.27 pence per therm.

Ulrich Weber, LSEG analyst, says that a significant increase in gas demand to heat and generate electricity on the day after as temperatures drop and wind power production falls should support prices.

The temperature in Northwest Europe is expected to drop by 3deg Celsius the next day and will be slightly colder during the week.

The demand for heating is expected to increase by 565 gigawatt hours per day (GWh/d), or 60 GWh/d, for the next working week.

Weber stated that "solid demand for the day ahead will lead to another sideways trading day."

Analysts from Engie's EnergyScan say the market still believes that there are too many risks, including weather conditions, Russian gas supplies through Ukraine and Asia LNG demands for a downward trend to be established.

Analysts at EnergyScan said that EU gas stocks are 87.04% full compared with 97.29% the previous year.

Daniel Hynes is a senior commodity strategist with ANZ Bank. He said that forecasts suggest Europe may be in for the coldest winter ever since Russia invaded Ukraine. This will increase demand for LNG, and keep energy prices high.

Gazprom, a Russian gas company, said that it will send the same amount of gas via Ukraine to Europe on Thursday as the day before.

The benchmark contract on the European carbon markets was down by 0.26 euros at 68.21 euro per metric ton.

(source: Reuters)