Putin's decree: Gas prices to fall on a milder outlook
The Dutch and British wholesale prices of gas fell slightly on Friday morning, due to a more milder forecast for the weather since mid-December. Also, Russian President Vladimir Putin canceled a requirement that gas buyers convert their roubles.
The benchmark contract for the Dutch TTF hub, the front-month contract, was down by 0.27 euros at 46.26 euro per megawatt (MWh) at 0919 GMT. Meanwhile the contract for February was 0.31 euros lower at 46.24 euro/MWh.
LSEG data shows that although colder weather will be expected in North-West Europe next week, recent forecasts indicate temperatures above normal for the second and first halves of December.
Analysts at Engie EnergyScan said that European gas prices may remain low today, as there was no significant change in the weather forecasts over night and the duration of cold temperatures is expected to be limited next week.
On Thursday, President Vladimir Putin canceled the option for Russian gas buyers to convert their currency in roubles through the U.S. sanctioned Gazprombank. He suggested that the remaining European gas buyers could convert their currency in roubles using other banks not under sanctions.
This should relieve some of the anxiety felt by those European companies who continue to heavily depend on Russian molecules.
He added that "it also highlights Russia's status as an energy market taker in Europe, adapting to the changing climate."
The exact payment mechanism for the remaining European gas buyers was not immediately known.
The benchmark contract on the European carbon markets was down 0.25 euros at 67.09 euro per metric ton.
(source: Reuters)
