Dutch and British wholesale gas prices fell on Monday with mild weather continuing to depress demand while supplies from Norway and of liquefied natural gas (LNG) remained strong with renewables output set to rise further.

The contract for February at the Dutch TTF hub fell by 0.90 euro to 33.50 euros per megawatt-hour (MWh) by 0953 GMT, LSEG data showed.

The day-ahead contract TRNLTTFD1 fell by 0.10 euros to 31.50 euros/MWh.

“Renewable generation is up today and should continue to increase during the week,” analysts at Engie EnergyScan said in a daily research note.

“In addition to ongoing above-normal temperatures, we are clearly in the configuration where European gas prices are likely to drop to the bottom of their trading range.”

Pipeline flows are healthy from Norway and stable from Russia via Ukraine, while LNG deliveries are plentiful.

Europe’s gas storage is still at high levels at 88.84% full, latest data from Gas Infrastructure Europe showed.

“Technically we are in an oversold market and well below all rolling averages, but strong supply and warm weather seem to drive the market further down,” LSEG analyst Saku Jussila said in a morning note.

In Britain, the day-ahead contract TRGBNBPD1 edged up 0.30 pence to 74.00 p/therm.

Peak wind power generation in the country was forecast at 15.7 gigawatts (GW) on Monday, rising to 17.8 GW on Tuesday, out of a total metered capacity of about 23 GW, Elexon data showed.

In the European carbon market, the benchmark contract CFI2Zc1 increased by 0.73 euro to 66.72 euros a metric ton.
Source: Reuters (Reporting By Marwa Rashad; Editing by Kirsten Donovan)