Dutch wholesale gas prices fell on Thursday morning amid solid European storage levels, high Norwegian supply, strong flows of liquefied natural gas (LNG) and mild weather.

The Dutch November contract was down 0.36 euro to 37.50 euros per megawatt hour (MWh) at 0912 GMT, while the day-ahead contract was 2.30 euro lower at 30.25 euros/MWh, according to LSEG data.

“The market is bearish, thanks to full storage, high LNG flows, lower power prices and mild weather,” a European gas trader said.

Analysts at Engie’s EnergyScan said the increase in Norwegian supply – nominated at 284 million cubic meters per day (mcm/d) for Thursday, compared to 266 mcm/d on Wednesday – seemed to exert downward pressure.

Europe’s gas storage sites were 96.33% full, the latest data from Gas Infrastructure Europe showed.

LSEG analyst Timothy Crump said temperatures in Northwest Europe looked little changed for the day ahead before rising over the weekend and into next week.

In Britain, temperatures are forecast to step up sharply for the day ahead and remain volatile over the next week before dropping back towards seasonal norms by the end of next week.

The British day-ahead contract fell 4.15 pence to 73.70 p/therm, while the November contract was 1.79 pence down at 93.25 p/therm, according to LSEG data.

In the European carbon market, the benchmark contract inched down 0.45 euro to 81.22 euros a tonne.
Source: Reuters (Reporting by Marwa Rashad Editing by Mark Potter)