BRUSSELS: European and British wholesale gas prices fell from the previous day’s record highs on Wednesday, pressured by an higher Russian supplies and a flat demand outlook.
The Dutch day-ahead contract on the TTF hub was down 4.15 euros at 123.05 euros per megawatt hour (MWh) by 1058 GMT after settling at a record high on Tuesday.
The British gas contract for day-ahead delivery was down 8.50 pence at 3.09 pounds per therm.
A stable demand outlook for the remainder of this month and higher Russian gas flows were bearish factors, Refinitiv analysts said.
Russian natural gas deliveries to Germany through the Yamal-Europe pipeline climbed above an hourly volume of 12,000,000 kilowatt hours (kWh) for the first time since Nov. 21, data from German network operator Gascade showed.
Wider sentiment remained bullish, however, with temperatures set to fall below seasonal norms from next week, Refinitiv added.
The European benchmark front-month TTF contract was down 3.40 euros at 124.50 euros/MWh and off an intraday high of 132 euros/MWh.
On Tuesday it reached its highest ever close at 127.90 euros/MWh, pushing European prices above those in Asia - a key competitor for attracting liquid natural gas (LNG) cargoes.
European prices continued to rally on concerns over the start of Russia’s Nord Stream 2 pipeline to Germany and growing tensions in Ukraine, while Asian prices weakened because storage at terminals was close to full, Tom Marzec-Manser, head of gas analytics at ICIS, told Reuters. “There is now an opportunity for Europe to draw in spot cargoes. This premium may need to be maintained for the coming weeks and months to continue to secure additional supplies,” Marzec-Manser said.
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