Dutch wholesale gas prices rose on Thursday morning amid a colder weather forecast and a chance for a rebound following two sessions of declines.

The benchmark front-month contract at the Dutch TTF hub (TRNLTTFMc1) was up 0.28 at 41.28 euros per megawatt hour (MWh), or $13.07/mmBtu, by 0855 GMT, according to LSEG data.

The British day ahead contract (TRGBNBPMc1) rose by 1.51 pence to 101 pence/therm.

Latest weather forecast predicts colder temperatures next week below normal, with demand for heating during the working days next week expected to rise by 178 gigawatt hour per day (GWh/d) to 3590 GHW/d, data compiled by LSEG showed.

“With the latest temperature forecasts for the weeks ahead also looking below seasonal normal, this may also push gas storage levels lower before the end of the heating season and the restart of this year’s refilling,” consultancy Auxilione said in a morning note.

EU gas storage sites have depleted faster this winter because of colder and less windy weather and are now about 37.32% full, data from Gas Infrastructure Europe showed.

“A -4.5% drop on Tuesday and -5% decline yesterday suggest a potential upward correction today,” LSEG analyst Oleh Skrynyk said.

The European Commission proposed on Wednesday to retain the EU’s gas storage requirements and targets for two more years but it said the targets in earlier months are “indicative” – which, in EU legislation, typically means not binding.

The requirement to meet interim filling targets has stoked prices over the past few months.

The narrowing spread between European gas prices at the Dutch TTF hub and the Asian benchmark Japan Korea Market (JKM) is helping with the price rise this morning, Energy Scan analysts said in a morning note.

“Given the low level of gas stocks, Europe cannot afford to let LNG cargoes leave for Asia,” LSEG analysts added.

In the European carbon market, the benchmark contract (CFI2Zc1) inched down 0.22 euro to 68.58 euros per metric ton.
Source: Reuters