Dutch and British wholesale gas prices fell on Monday morning on expectations of higher temperatures and wind generation, as well as steady liquefied natural gas (LNG) and Norwegian pipeline supplies.

The contract for January at the Dutch TTF hub fell by 2.53 euros to 36.10 euros per megawatt hour (MWh) by 0855 GMT, its lowest level since Oct. 6, LSEG data showed.

The contract for February decreased by 2.45 euros to 36.60 euros/MWh.

In the British market, the day-ahead price fell by 4.10 pence to 91.00 pence per therm.

Average temperatures are expected to edge up this week, while wind generation is expected to increase over the next two days. Higher wind output typically reduces demand for gas from power plants.

LNG send-out is steady and gas pipeline flows from Norway to Britain and Europe are stable at 347 million cubic metres a day.

Meanwhile, French nuclear availability is expected to rise to 51 gigawatts (GW) by Wednesday from around 45 GW, data from LSEG showed.

Jefferies bank said the forward gas curve could be normalizing following the energy crisis last year as Europe enters a period of warmer-than-average temperatures.

Some investors some think a normalization will not happen until there is better visibility on supply and demand for next winter.

“We believe that a good level of exit European inventories this winter, combined with continued subdued levels of demand growth and a small increase in supply, should be sufficient to support a normalization in forward prices,” Giacomo Romeo, equity analyst at Jefferies, said in a note.

In the European carbon market, the benchmark contract CFI2Zc1 fell by 0.98 euro to 67.65 euros a metric ton.
Source: Reuters (Reporting by Nina Chestney)