Dutch and British wholesale gas prices continued to decline on Friday morning as mild weather and stable supply weighed on the market and risk premiums associated with the conflict in the Middle East ebbed away.
The benchmark Dutch front-month contract at the TTF hub was down 0.80 euro to 33.00 euros per megawatt hour (MWh) or $11.33/mmBtu, by 0813 GMT, LSEG data showed.
The contract is down almost 19% compared with the last traded price on Friday of 40.65 euros/MWh when prices were, bolstered by fears over an escalating conflict in the Middle East which has since subsided after U.S. President Donald Trump brokered a ceasefire between Iran and Israel.
“The bearish momentum was triggered by the easing of tensions in the Middle East,” analysts at Engie EnergyScan said in a daily market report.
The Dutch August contract (TRNLTTFMc2) was down 0.87 euro at 33.60 euros/MWh.
The British day-ahead contract (TRGBNBPD1) was down 1.40 pence at 77.15 p/therm.
“Today, we expect prices to trade bearishly, pressured by mild weather, strong supply and limited upside catalysts,” said LSEG analyst Oleh Skrynyk
Total Norwegian exports are stable at 315 million cubic metres/day LSEG data showed.
Analyst at Engie EnergyScan said temperatures were expected to be between 6-10 degrees Celsius above normal in central west Europe early next week.
In the European carbon market, the benchmark contract (CFI2Zc1) was down 0.19 euro at 70.21 euros a metric ton.
Source: Reuters