Dutch and British wholesale gas prices edged lower on Tuesday morning as higher temperatures curbed gas demand and supply remained steady.

The benchmark Dutch front-month contract at the TTF hub (TRNLTTFMc1) was down 0.68 euro at 34.88 euros per megawatt hour (MWh) or $11.65/mmBtu, by 0805 GMT, LSEG data showed.

The Dutch day-ahead contract (TRNLTTFD1) was down 0.4 euro at 34.93 euros/MWh.

The British day-ahead contract (TRGBNBPD1) was down 1.25 pence at 82.25p/therm.

In Europe, “a strong warm spell peaks (on) Friday with temperatures 5-7 degrees Celsius above normal before cooler conditions next week,” analysts at Engie EnergyScan.

Data from LSEG showed local distribution zone gas demand, which is primarily used for heating, down by 112 gigawatt hours/day (GWh/d) for Wednesday at 894 GWh.

Changes to the maintenance schedule for the Norway’s Oseberg gas field also weighed on prices.

“The comfortable supply-demand balance and a further downward revision in the expected impact of Oseberg maintenance could contribute to a slightly bearish tone,” LSEG analyst Yuriy Onyshkiv said.

“The full shutdown of the field will now commence on 12 June — one day later than previously expected. This means that on 11 June, Oseberg will have 13 million cubic metres/day more available capacity than earlier anticipated,” Onyshkiv said.

In the European carbon market, the benchmark contract (CFI2Zc1) was down 0.75 euro at 73.48 euros a metric ton.
Source: Reuters