British and Dutch prompt wholesale gas prices were mixed on Tuesday morning with some contracts higher on colder weather and some down due to increased Norwegian exports to Britain.

The Dutch benchmark contract for January was up 1.50 euros at 138.50 euros per megawatt hour (MWh) by 0853 GMT, Refinitiv Eikon data showed. The British day-ahead contract was 2.00 pence higher at 338.00 pence per therm.

However, the Dutch February contract was down 5.00 euros at 136.00 euros/MWh and the British price for immediate delivery was 5.00 pence lower at 333.00 pence/therm.

Britain’s Met Office has issued a yellow national severe weather warning for snow for Wednesday covering northern Scotland.

Met Office deputy chief meteorologist, Rebekah Sherwin, said: “Temperatures will start to dip this week, with daytime temperatures struggling to get above freezing in many places from mid-week onwards.”

Northwest Europe will also experience colder weather in December and early January which could keep heating demand elevated.

“A tighter (UK gas) balance has already helped narrow UK exports to Europe and the trend is expected to continue well into the winter, becoming an additional bullish factor for the Continent,” said Yuriy Onyshkiv, gas analyst at Refinitiv.

However, on the bearish side, there is a ramp up of Norwegian exports to Britain resulting in oversupply stronger wind speeds from the middle of next week.

Liquefied natural gas imports to Britain and north-west Europe also remain strong.

In the European carbon market, the benchmark contract CFI2Zc1 inched down by 0.33 euro to 86.98 euros a tonne.
Source: Reuters (Reporting by Nina Chestney)