Prices fall on weaker demand, robust LNG and Nowegian supply
(Reuters) - Dutch and British wholesale gas prices fell on Tuesday morning due to weaker demand and robust Norwegian and LNG supply.
In the Dutch market, the day-ahead price was 12.92 euros lower at 119.50 euros per megawatt hour (MWh) by 0940 GMT, while the front-month contract fell by 7.60 euros to 161.50 euros/MWh.
In the UK, the day-ahead contract fell by 29.75 pence to 125 pence per therm,
Refinitiv gas analyst Yuriy Onyshkiv said the outlook for prices today was bearish due to weaker forecast demand and healthy Norwegian imports.
"The long-term weather forecast around seasonal norms also provides confidence to market participants as we move deeper into the winter season when weather fluctuations have a major effect on gas consumption and balance," he added.
North-west Europe residential consumption and gas-for-power demand are both lower, while stronger wind forecasts in Britain have eased gas-for-power demand.
LNG send-out in north-west Europe has also risen.
LNG import volumes into Europe are at their highest seasonal levels ever and industrial gas demand has contracted sharply which has helped to soften the price impact of Nord Stream 1 being out of service, said analysts at Bank of America.
However, day-ahead Dutch gas prices have averaged 200 euros/MWh for the past three months and the analysts expect this level to hold for the next four to six months under normal weather conditions.
In the European carbon market, the benchmark contract inched up by 0.45 euro to 66.39 euros a ton.
(Reporting by Nina Chestney)
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