British and Dutch wholesale gas prices fell on Thursday morning as forecasts for warmer temperatures dented demand but uncertainties about France’s nuclear output and strikes at its liquefied natural gas (LNG) terminals provided some support.

The benchmark front-month contract at the Dutch TTF hub was down 0.795 euros at 42.11 euros per megawatt hour (MWh) by 0921 GMT, on the ICE exchange.

The British day-ahead contract was 8.00 pence lower at 102.00 pence per therm, according to Refinitiv Eikon data.

“There are no new fundamentals, the bearish sentiment remains intact due to mild weather forecasts and high storage levels across the continent,” analysts at Energi Danmark said in a daily market deport.

Expectations of warmer temperatures curbed demand for gas in Britain.

Local distribution zone (LDZ) demand, which is primarily used for heating, was forecast at 149 million cubic metres (mcm) for Thursday, falling to 124 mcm on Friday, Refinitiv data showed.

The forecasts were 40 mcm and 24 mcm lower respectively than earlier estimates.

Strikes against the French government’s planned pension reform entered a second week on Wednesday, disrupting maintenance at nuclear reactors, hitting liquefied natural gas (LNG) prices and blocking some shipments from refineries and depots.

“We expect some volatility adding to the upside due to on going Norwegian maintenances and French Strikes at LNG terminals continuing until at least March 21 and Dunkerque expected back tomorrow,” analysts at Refinitiv said in a daily research note.

Analysts and traders said cargoes planned for the coming week would also be diverted to other terminals and some are likely to be delayed. So far most of these cargoes have stayed in Europe.

European gas storage sites were around 56% full, the latest data from Gas Infrastructure Europe showed.

In the European carbon market, the benchmark contract CFI2Zc1 was 0.47 euro lower at 88.73 euros a tonne.
Source: Reuters (Reporting By Susanna Twidale; editing by Nina Chestney)