LONDON: British and Dutch wholesale gas prices were mixed on Monday morning amid weak liquidity due to a public holiday in several European cities.
In the British gas market, the contract for immediate delivery rose by 29 pence to 152 pence per therm by 0836 GMT.
The gas system in the UK was 26.7 million cubic meters (mcm) undersupplied on Monday, National Grid data showed.
Slower wind speeds have raised the day-ahead gas for power forecast by 9 mcm to 68 mcm per day, Refinitiv analysts said.
Peak wind power generation is forecast at 4.4 gigawatts (GW) on Monday and is expected to fall to 2.4 (GW) on Tuesday, out of a total metered capacity of 19.9 (GW), Elexon data showed.
In the Dutch gas market, the July contract rose by 1.10 euros to 84.6 euros/MWh, while the day-ahead contract fell by 5.03 euros to 78.47 euros/MWh.
“In the short term, the market looks quite bearish as LNG is still heading to Europe and as Russian gas flows continue to come in,” a European gas trader said.
Russian gas flows directly to Germany rose on Monday compared with the weekend, while other flows to Europe remained stable.
Russia’s Gazprom said its supply of gas to Europe through Ukraine via the Sudzha entry point was seen at 40.1 million cubic metres (mcm) on Monday, unchanged from Sunday.
Analysts at Citi said in a research note they expect Dutch TTF prices to start easing as the issue over companies paying in Roubles seems settled and LNG flows continue to head to Europe.
“Market sentiments have calmed down... with the Rouble for gas issue now fading, Europe should be able to fill its inventory, which could help ease prices,” they said.
In the European carbon market, the benchmark contract fell by 1.74 euros to 85.13 euros a tonne.
Comments
Comments are closed for this article.