Dutch and British gas prices fell on Tuesday as strong supply and forecasts for milder temperatures weighed on the market

The benchmark Dutch month-ahead gas contract was down 1.15 euros at 48.85 euros per megawatt hour (MWh) by 0919 GMT. The December contract slipped 0.60 euro to 51.70 euros/MWh.

In Britain, the November contract was down by 5.5 pence at 120 pence per therm.

Supply was strong, with Norwegian piped exports nominated at 321 million cubic metres (mcm) a day, up 11 mcm/d up compared with Monday, LSEG data showed.

“Furthermore, on the bearish side, the latest (weather) forecast suggests slightly milder weather next week,” LSEG analyst Saku Jussila said in a daily research note.

“Northwest Europe liquefied natural gas sendout is expected to continue stepping up from the beginning of November.”

Gas supply from Russia was stable. Russia’s Gazprom GAZP.MM said it would send 42.4 million cubic metres of gas to Europe via Ukraine on Tuesday, the same volume as on Monday.

Meanwhile Europe’s gas storage sites remain near full, at 99.25% of capacity according to the latest Gas Infrastructure Europe data.

In the prompt market, the British day-ahead contract fell by 11 p to 113 p/therm.

Expectations of strong output from Britain’s wind farms curbed demand for gas from power stations.

Peak wind power generation in Britain was forecast at 9.1 gigawatts (GW) on Tuesday, rising to 16.1 GW on Wednesday, Elexon data showed.

In the European carbon market, the benchmark contract rose 0.28 euros to 79.00 euros a tonne.
Source: Reuters (Reporting by Susanna Twidale; Editing by Jan Harvey)