EUROPE GAS-Prices stable as healthy supply offsets cooler temperature forecasts

Credit: REUTERS/Wolfgang Rattay

LONDON, Feb 20 - Dutch and British wholesale gas prices were stable on Tuesday morning, as healthy supply and helped offset expectations of cooler temperatures.

The benchmark front-month contract TRNLTTFMc1 at the Dutch TTF hub inched up by 0.40 euro to 24.00 euros per megawatt hour (MWh) by 0957 GMT, LSEG data showed.

The April contract TRNLTTFMc2 edged down by 0.10 euro to 23.70 euros/MWh.

In Britain, the front-month contract TRGBNBPMc1 was 0.62 pence higher at 58.70 pence per therm while the day-ahead contract TRGBNBPD1 rose by 1.47 pence to 56.50 pence/therm.

“With the cooler weather from this weekend until early March being priced in, ample stocks on top of the robust Norwegian and LNG flows could offset some potentially higher demand and limit any price upside,” said LSEG analyst Yuriy Onyshkiv.

Temperatures in central Europe and Britain are currently around 2-7 degrees Celsius above normal for the time of year but are expected to return to more normal levels towards the end of the week, LSEG’s meteorologist Marcin Gorski said.

Supply of Norwegian gas supplies to Europe have rebounded and were nominated at 340 million cubic metres day (mcm/d) on Tuesday, up 4 mcm from Monday and up 21 mcm compared with Friday, analysts at Engie EnergyScan said.

Analysts said the weak energy prices are also having a negative effect on European carbon prices.

The benchmark EU Allowance (EUA) carbon contract was down 0.09 euros to 53.45 euros a metric ton.

The contract hit an intra-day low of 52.90 euros/tonne on Monday, its lowest level since August 2021.

“Carbon’s weakness is an echo of a broader softening of energy markets and continued pressure from investment fund positions extending their net shorts,” said Marcus Ferdinand, chief analytics officer at Norway-based consultancy Veyt.

(Reporting By Susanna Twidale; editing by Nina Chestney)

((susanna.twidale@thomsonreuters.com; +44 207 5424753;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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