British and Dutch wholesale gas prices fell on Monday morning as temperatures turned warmer, curbing demand for gas and as Europe’s energy ministers met to continue talks on a cap on prices.

The British day-ahead contract fell by 25 pence to 257 p/therm by 0930 GMT according to Refinitiv Eikon data.

The British within-day contract fell by 40 p to 260 p/therm.

British local distribution zone demand, which is primarily used for heating, is expected in Britain at 172 million cubic metres/day (mcm/d) on Monday and 171 mcm on Tuesday, Refinitiv data showed.

The forecasts were 23 mcm and 5 mcm lower respectively than previously expected.

The Dutch benchmark contract for January fell by 8 euros to 109.50 euros per megawatt hour (MWh).

Analysts at Engie EnergyScan said several bearish factors are now weighing on gas prices.

“The prospect of lower demand due to improving French nuclear generation and forecasts of higher temperatures and higher wind generation for this week, they have no reason to stay high,” the analysts said.

European Union nations’ energy ministers also meet in Brussels on Monday in an effort to agree a cap on gas prices, an emergency measure that has split opinion across the bloc as it seeks to tame the energy crisis.

Roughly a dozen countries, including Belgium, Poland and Greece, have demanded a cap below 200 euros/MWh, while other countries such as Germany and the Netherlands fear the cap could disrupt Europe’s energy markets and divert much-needed gas cargoes away from the EU.

In the European carbon market, the benchmark contract was up 1.73 euros at 85.55 euros a tonne.
Source: Reuters (Reporting By Susanna Twidale; Editing by Shounak Dasgupta)