Dutch and British wholesale gas prices inched up on Friday morning on forecasts for colder temperatures and less wind from next week.
The Dutch January contract TRNLTTFMc1 edged up by 0.30 euro to 40.75 euros per megawatt hour by 0931 GMT, LSEG data showed. The contract briefly hit 37.08 euros/MWh, a two-month low on Tuesday but has since rebounded.
The British contract for the weekend TRGBNBPWE rose by 1.50 pence to 97.00 pence per therm.
Temperatures in Britain and north-west Europe are forecast to increase tomorrow but then fall again by next week, which could raise demand for heating.
Longer-term average temperature forecasts also show a colder end to December than previously forecast, according to LSEG data.
Wind speeds are also forecast to drop by next week, which could increase demand for gas from power plants.
However, European gas stocks are forecast to remain at all-time highs of around 94 billion cubic metres to the end of the year and into January, according to consultancy Energy Aspects.
“High stocks, supported by structural demand weakness, strong LNG receipts and record-high re-imports of gas from Ukrainian storage in early December mean Europe is well-placed to balance supply/demand fluctuations in Q1 2024 without having to price gas out of competition with coal, while also preserving end-winter stocks,” the analysts said.
In the European carbon market, the benchmark contract CFI2Zc1 inched up by 0.27 euro to 69.92 euros a metric ton.
Source: Reuters (Reporting by Nina Chestney)