Forward Dutch gas contracts eased on Monday morning in a calm session as the supply and demand balance remained relaxed and with the British market closed for the coronation bank holiday.

The Dutch TTF front-month contract on the Intercontinental exchange (ICE) was down by 0.93 euros at 35.64 euros per megawatt hour (MWh) by 0849 GMT.

The ICE TTF front-quarter contract shed 0.89 euros to 37.54 euros/MWh.

“Strong supply, high storage levels and relatively low demand in Asia all contributes to the steady downturn, and this could very well continue this week as there are no bullish signs from the weather forecasts,” analysts at Energi Danmark said in a note.

Temperatures in continental Europe and Britain will be near normal this week and next, but could turn warmer from May 20, Refinitiv meteorologist Georg Mueller said.

Norwegian pipeline gas nominations to Europe rose on Monday, with some maintenance on the massive Troll field ending over the weekend.

Meanwhile, Europe’s gas storage sites are 61.4% full, the latest data from Gas Infrastructure Europe showed.

Asian spot liquefied natural gas (LNG) prices hit a 23-month low on Friday on mild weather and weak restocking demand in China, Japan and Korea.

LNG prices could trickle further down this week, with recent procurement activity from South and Southeast Asia amid hot weather and low spot prices expected to slow, Refinitiv director of LNG research Anne Katrin Brevik said in a morning note.

“With much of the near-term requirements potentially covered for now, importers may take a wait-and-see stance hoping for prices to inch down further,” she added.

In the European carbon market, the benchmark contract eased by 0.06 euros to 84.88 euros a tonne.
Source: Reuters (Reporting by Nora Buli in Oslo, Editing by Louise Heavens)