Prices for gas in Europe fall amid profit-taking but remain near the year high
The Dutch and British wholesale price fell on Tuesday morning due to profit-taking, but they remain at their highest levels so far this season as temperatures dropped.
LSEG data shows that the benchmark front-month contract for the Dutch TTF hub fell 0.60 euros to 43.30 Euro per megawatt hour or $13.48/mmbtu at 0918 GMT.
The Dutch day-ahead contracts dropped 0.35 euros to 43.50 Euros/MWh.
The British day-ahead contracts fell by 0.50 cents to 110.00 pence per therm.
In a daily report, Engie EnergyScan analysts said that some participants in the financial market who hold long positions might decide to sell their positions.
LSEG data shows that the front-month TTF prices hit an intraday high of 44.10 Euro/MWh on January 1, its highest level since December 1. This was due to cooler temperatures, and weak wind farm output, which drove gas demand by power plants.
Tim Crump, LSEG analyst, said: "The fundamental picture is bullish in the sideways direction as the market values these first signs winter."
Since November 3, Engie EnergyScan analysts have reported that Europe has begun to remove gas from storage due to cooler temperatures.
Gas Infrastructure Europe released the latest data showing that Europe's gas storage was 93.37 percent full.
The market is also dominated by concerns about the expected termination of a transit agreement between Russia and Ukraine for transmitting gas to Europe.
Gazprom, the Russian gas producer, said that it will send 42.4 million cubic meters of gas via Ukraine to Europe on Tuesday. This is up from 42.3 mcm sent on Monday.
The benchmark contract on the European carbon markets fell from 66.16 to 1.41 euros per metric ton.
(source: Reuters)
