Dutch wholesale gas prices slip on storage levels, Norwegian supply

(Reuters) - Dutch wholesale gas prices edged lower on Wednesday morning on high storage levels and strong Norwegian supply.

The Dutch November contract was down by 0.25 euros to 37.30 euros per megawatt hour (MWh) by 0851 GMT, while the day-ahead contract was 0.19 euro lower at 30.66 euros/MWh, according to LSEG data.

“EU gas storage tops 96% and continues to grow together with stable Norwegian flows are underpinning confidence for the time being,” analysts at consultancy Auxilione said in a daily market note.

Europe’s gas storage sites were 96.15 % full, the latest data from Gas Infrastructure Europe showed.

Meanwhile, milder weather for the time of year also curbed demand.

“Temperatures remain elevated - stunting typical heating demand - while strong renewable output, French nuclear over 15 gigawatts above levels at this juncture in 2022 and rising LNG send-out should continue to exert pressure on prices,” LSEG analyst Wayne Bryan said in a daily research note.

In the British market, the day-ahead contract edged up by 1.00 pence at 76.00 p/therm, regaining some lost ground after steep falls over the past few days.

“A slight retrace could occur with some good buying opportunities with prices at these levels, but the over-arching sentiment remains bearish,” said LSEG’s Bryan.

In the European carbon market, the benchmark contract inched down by 0.01 euro to 79.66 euros a ton.

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