Dutch and British wholesale gas prices edged up on Thursday morning on technical buying after falling previously this week and on colder temperatures forecast for north-west Europe tomorrow.

The benchmark front-month contract at the Dutch TTF hub inched up by 0.85 euro to 28.35 euros per megawatt hour (MWh) by 0938 GMT, while the March contract was 0.62 euro higher at 28.42 euros/MWh, LSEG data showed.

In Britain, the February contract TRGBNBPMG4 was 1.48 pence higher at 69.84 pence per therm.

“Prices have been falling this week so contracts look over-sold,” a gas trader said.

The 14-day relative strength index and the Dutch day-ahead price falling below a resistance level of 30 euros yesterday also suggests over-selling, LSEG gas analyst Saku Jussila added.

The front-month Dutch contract is still at its lowest level since the beginning of August, however.

In north-west Europe, temperatures are expected to drop by around 2 degrees Celisus on average tomorrow and demand is forecast 350 gigawatt hours per day higher for the day-ahead.

But in Britain, milder temperatures are expected towards the weekend and demand is forecast lower for the day-ahead, LSEG data showed.

Wind output is also expected to pick in north-west Europe and Britain from the weekend. High wind output typically reduces demand for gas from power plants.

Supply remains strong from pipeline gas and liquefied natural gas (LNG) send-out.

In the European carbon market, the benchmark contract CFI2Zc1 inched up by 0.19 euro to 63.64 euros per metric ton.
Source: Reuters (Reporting by Nina Chestney)