Dutch and British gas prices rose on Thursday morning as forecasts for cooler weather increased expected demand for heating.

The Dutch December contract rose 0.15 euros to 45.10 euros per megawatt hour (MWh) by 0952 GMT, LSEG data showed.

The British December contract was up by 5.43 pence at 115 p/therm.

The British day-ahead contract rose by 3.5 p to 114.50 p/therm

“A further downward revision in temperature forecasts for the end of November and the beginning of December overnight, combined with a drop in wind power generation, should continue to provide support,” Engie EnergyScan analysts said in a daily market note.

LSEG meteorologist Marcin Gorski said temperatures were expected to fall sharply below normal for the time of year from Friday.

“In the next week, cold will spread over the continent and last until the following week at least,” he said in a market note.

Gas supply, however, remains strong. European gas storage inventories have started to fall but remain at record highs for the time of year, at just below 99% full, according to latest data from Gas Infrastructure Europe.

Peak wind power generation in Britain was forecast at 18.5 gigawatts (GW) on Thursday, dipping to 16.7 GW on Friday, out of total metered capacity of about 23 GW, Elexon data showed.

In the European carbon market, the benchmark contract edged down by 0.18 euros to 75.01 euros a metric ton.
Source: Reuters (Reporting by Susanna Twidale)