Dutch and British wholesale gas prices declined on Wednesday morning on higher wind output forecasts, softer consumption and healthy storage levels.

The Dutch benchmark front-month contract was down 1.04 euros at 33.96 euros per megawatt hour (MWh) by 0756 GMT, while the August contract was 0.95 euro lower at 34.00 euros/MWh, according to Refinitiv Eikon data.

The British contract for July fell by 2.23 euros to 84.30 pence per therm.

Wind output in Britain and north-west Europe is forecast to rise over the next few days to above normal levels until the end of next week, Refinitiv Eikon data showed.

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

The European gas market yesterday was partly supported by Norwegian maintenance extensions.

The supply balance is forecast to be looser than previously over the next couple of weeks in Britain, due to storage injections, exports to north-west Europe and unchanged liquefied natural gas (LNG) and Norwegian imports.

“In the absence of further Norwegian gas output reductions, the fundamental picture looks stable and bearish (for Europe). Consumption forecasts and LNG sendout expectations remain flat, which is expected to keep weighing on prices,” said Yuriy Onyshkiv, gas analyst at Refinitiv.

In the European carbon market, the benchmark contract CFI2Zc1 was down 0.39 euro at 88.46 euros a tonne.
Source: Reuters (Reporting by Nina Chestney)