Dutch and British gas prices were mixed on Tuesday, with prompt contracts rising as lower wind speeds should lift demand from the power sector, while further out full storages and ebbing concerns over LNG supplies weighed on prices.

In Britain, the day-ahead contract was up by 1.50 pence at 95.00 p/therm by 1003 GMT, with the Dutch equivalent gaining 0.70 euros to 41.50 euros/MWh, according to LSEG data.

“In the UK, gas for power demand rises over the coming days as both wind and nuclear power generation drop. Both recover towards the weekend, especially wind,” LSEG analyst Ulrich Weber said in a morning note.

UK gas demand for power should rise 21 million cubic metres (mcm) per day to 55 mcm/day, but falling to 37 mcm/d next week, LSEG data showed.

Demand for heating in Britain is forecast up by 13 mcm/d for Wednesday at 151 mcm/day and rising to 171 mcm/day next week.

Temperatures in Central Europe are set to decline until the weekend, then briefly rise above normal, before dropping below normal next week, LSEG meteorologist Marcin Gorski said.

Further out, the Dutch December contract was down by 1.20 euros at 46.40 euros per megawatt hour (MWh) and January contract down by 0.70 euros at 48.30 euros/MWh.

Forward gas prices rose late on Monday over concerns about liquefied natural gas (LNG) exports from Freeport likely due to a power outage, Daniel Hynes, senior commodities strategist at ANZ bank said in a note.

Latest figures pointed to a recovery in Freeport flows, but any restrictions could be a “major bullish trigger”, LSEG’s Weber said.

Still, the almost completely filled storages across Europe limit the upside significantly, analyst at Energi Danmark said.

Europe’s gas storage sites remain at historical highs, being 99.49% full, the latest Gas Infrastructure Europe data shows.

In the European carbon market, the benchmark contract fell by 0.15 euro to 77.33 euros a tonne.
Source: Reuters (Reporting by Nora Buli in Oslo; editing by David Evans)