Dutch and British wholesale prices fell on Wednesday morning amid expectations of higher wind power output and stable supply.

The benchmark front-month contract at the Dutch TTF hub fell by 2.01 euros to 41.54 euros per megawatt hour (MWh) by 0949 GMT, while the December contract was 0.96 euro lower at 41.98 euros/MWh, LSEG data showed.

In the British market the front-month contract declined by 1.10 pence to 105.26 pence per therm.

Temperatures in north-west Europe are forecast to fall but remain above normal levels over the next two weeks, according to the LSEG data.

But peak wind generation in Britain is forecast to rise to 11.2 gigawatts (GW) on Thursday from 6.5 GW Wednesday, Elexon data showed.

German wind output is also expected to spike above normal levels tomorrow, weighing on demand for gas from power plants which could fall by 54 gigawatt hours per day (GWh/d) to 2,541 GWh/d, LSEG data showed.

“Wind speeds are forecast to stay below seasonal averages and slowly recover toward normal by the second week of November,” said Yuriy Onyshkiv, gas analyst at LSEG.

Norwegian gas outages are also winding down this week. Total Norwegian export nominations are 3 million cubic metres (mcm) higher at 336 mcm/day on Wednesday.

Analysts at Engie EnergyScan said there seems to be some profit taking this morning.

“The uptrend is challenged, but it is too early to say it is over,” they said.

In the European carbon market CFI2Zc1, the benchmark contract fell by 1.27 euros to 66.01 euros per metric ton.
Source: Reuters (Reporting by Nina Chestney)