Dutch and British gas prices were stable on Tuesday morning as warmer temperatures and strong wind power output curbed demand.

The benchmark front-month contract at the Dutch TTF hub was up 0.15 euro at 27.85 euros per megawatt hour (MWh) at 0957 GMT, LSEG data showed.

The March contract was down 0.03 euro to 27.77 euros/MWh.

In Britain, the day-ahead contract was up 0.75 pence at 66.25 pence per therm.

“Tomorrow is forecast as the warmest and windiest day of the week, Northwest Europe temperatures averaging at almost 10 degrees Celsius, 7 degrees above the seasonal normal,” LSEG analyst Saku Jussila said in a daily research note.

Storms and high winds across Britain and Europe have led to strong output from wind farms, curbing demand for gas from gas power plants.

Wind was producing almost 40% of Britain’s electricity on Tuesday morning, Elexon data showed.

Gas supplies to Europe from Norway and cargoes of liquefied natural gas remained strong.

Norway’s natural gas output rose in December to an all-time high, beating an official forecast, data from the Norwegian Offshore Directorate (NOD) showed on Tuesday.

In the European carbon market, the benchmark contract CFI2Zc1 rose 0.75 euro to 62.79 euros a metric ton.

The contract was rebounding after hitting a 22-month low on Monday as low thermal power generation in Europe and weak industrial output curbed demand for permits.

“The next relevant support level is the psychological level of 60 euros, which could fall in the coming weeks if selling pressure prevails amid high supply,” analysts at Vertis said in an email.
Source: Reuters (Reporting by Susanna Twidale, Editing by Mark Potter)