British and Dutch gas prices were down on Wednesday morning on profit taking following recent gains caused by concerns over possible industrial action at Australian liquefied natural gas (LNG) facilities as high inventories curbed price rises.
The benchmark Dutch September contract was 0.80 euros lower at 34.25 euros per megawatt hour (MWh) by 0851 GMT, while the day-ahead contract fell by 0.51 euros to 34.68 euros/MWh, Refinitiv Eikon data showed.
The contract for October contract TRNLTTFMc2 rose by 1.20 euros to 39.20 euros/MWh.
In Britain, the day-ahead price TRGBNBPD1 fell by 0.25 pence to 88 pence per therm. The September contract TRGBNBPMc1 was down 3.50 p at 86.50 p/therm.
Analysts at Engie’s EnergyScan said that profit taking amid high gas stock levels have exerted downward pressure.
EU gas inventories are currently 92.6% full, latest data from Gas Infrastructure Europe showed.
Chevron’s two major LNG production facilities in Australia could face daily work stoppages of up to 10 hours next week after unions on Tuesday threatened industrial action in a dispute over pay and conditions.
While prices could remain volatile until there is clarity on the situation, analysts said that the strike is not expected to have a major impact, unless it extends to winter, which is also unlikely.
“There remains a risk around further potential supply disruptions coming either from changes to the Norwegian maintenance schedule or escalation of the LNG strike action in Australia,” Refinitiv analyst Yuriy Onyshkiv said in a daily research note.
In Britain, gas for power demand is forecast to pick up by 3 million cubic metres per day (mcm/d) to 51 mcm/d on the day ahead on weaker wind speeds.
Peak wind power generation was forecast at 7.04 gigawatts (GW) on Wednesday, falling to 3.7 GW on Thursday, from a total metered capacity of 22 GW, Elexon data showed.
In the European carbon market, the benchmark contract CFI2Zc1 rose by 0.58 euro to 85.35 euros a tonne.
Source: Reuters (Reporting by Marwa Rashad; Editing by Louise Heavens)