Dutch and British wholesale gas prices declined on Monday morning due to milder weather forecasts for the rest of this month, stronger wind output, easing tension in the Middle East and as Donald Trump was due to be sworn in as U.S. President.

The benchmark front-month contract at the Dutch TTF hub (TRNLTTFMc1) was down 1.07 euro at 46.33 euros per megawatt hour (MWh), or $14.01/mmbtu, by 0926 GMT according to LSEG data.

The Dutch contract for March (TRNLTTFMc2) was 0.68 euro lower at 46.53 euros/MWh.
In Britain, the front-month contract (TRGBNBPMc1) contract was 1.26 pence lower at 117.05 pence per therm.

The outlook for prices was bearish due to milder weather across north-west Europe for the rest of January which should dampen demand for gas.

“A shift to colder-than-normal or very wet and windy weather is not likely before early February,” said LSEG metereologist Georg Muller.

Wind speeds in Germany are forecast to rise towards the end of this week and wind output is also expected to be stronger in Britain next week, LSEG data showed.

Stronger wind generation typically reduces demand for gas from power plants.

The market will also be following the inauguration of U.S. President Donald Trump on Monday as he plans to issue a flurry of executive orders and directives, including ending a pause on liquefied natural gas exports.

A ceasefire between Hamas and Israel after 15 months of war could also calm markets if sustained.

Traders have diverted at least six cargoes of liquefied natural gas that were on course for Asia to Europe earlier this month, drawn by higher European prices and amid weak Asian demand, according to analysts and shipping data.

In the European carbon market, the benchmark EU allowance (EUA) contract (CFI2Zc1) was down 0.33 euro at 78.93 euros per metric ton.
Source: Reuters