British and Dutch wholesale gas prices were barely changed on Tuesday as forecasts showed cooler weather over the next couple of days, but solid inventories and strong flows of liquefied natural gas (LNG) were bearish drivers.

British gas for immediate delivery was 1.50 pence higher at 97.50 pence per therm by 0837 GMT, and the day-ahead inched down by 0.25 pence to 97.00 pence per therm, according to Refinitiv Eikon data.

The Dutch contract for May edged down by 0.21 euro to 39.60 euros per megawatt hour.

“In the next couple of days, it is slightly bullish. We will look for updates on how bad the weather can get in the next few days and that should give a better sense of direction for prices,” a European gas trader said.

Refinitiv gas analyst Timothy Crump said that the latest average weather forecasts show temperatures adjusting downwards which could increase consumption but they will rise to seasonal norms later in the week.

A rise in wind output could curb gas-for-power demand. Peak wind generation in Britain is forecast at 7.1 gigawatts (GW) on Tuesday and 14.6 GW on Wednesday, out of total metered capacity of around 22 GW, Elexon data showed.

Meanwhile, storage sites across Europe are approaching 60% full and flows of LNG continue to arrive in north-west Europe, consultancy Auxilione said in a morning report.

“So far, so good, in terms of the outlook of our first year without pipeline Russian gas ahead of next winter,” it added.

In the European carbon market, the benchmark contract was down 0.69 euro at 87.70 euros a tonne.
Source: Reuters (Reporting by Marwa Rashad; Editing by Nina Chestney)