The Dutch prices of gas are rising on the back of cooler temperatures forecasts
Dutch wholesale gas prices increased on Tuesday morning, as cooler temperatures and a lower renewable energy output forecasts boosted demand.
According to LSEG, the benchmark front-month contract for the Dutch TTF Hub was up 0.45 euros at 46.75 Euros per Megawatt Hour (MWh), which is $14.35 /mmBtu by 0906 GMT.
The Dutch April contract increased by 1.06 euros to 46.81 Euro/MWh.
In a daily note, LSEG analyst Wayne Bryan stated that temperatures are expected to drop below normal in Northwest Europe from 27 February to 4 March.
LSEG forecasted that the local distribution zone, which is primarily for heating, would be up to 321 gigawatt-hours a day for the day ahead and 45 GWh/d at the weekend for Northwest Europe.
Bryan stated that the demand for gas increased due to the expectation of a lower output from wind and solar power plants.
In Britain, the day-ahead contracts dropped 1.1 pence to 112.5 pence a therm.
The weekend temperatures in Britain are expected to warm up.
Gas prices have been supported by ongoing concerns about Europe's gas stock levels.
Engie EnergyScan analysts said that EU gas storage was around 40.6% filled on average, compared to 64.1% at this time last.
The analysts stated in a daily note that the market is reluctant to aggressively sell as the storage gap will not improve in the short-term.
The benchmark carbon contract in Europe was down 0.36 euros at 73.29 euro per metric ton. (Reporting by Susanna Twidale, Editing by Mrigank Dahniwala).
(source: Reuters)
