Dutch and British wholesale gas prices edged lower on Tuesday as an increase in temperatures curbed gas demand while supply remained strong.

The Dutch January contract TRNLTTFMc1 slipped by 0.45 euro to 39.90 euros per megawatt hour (MWh) by 0951 GMT, LSEG data showed.

The Dutch March contract TRNLTTFMc3 was down by 1.09 euro at 39.71 euros/MWh. The British within-day contract TRGBNBPWKD was down 0.25 pence at 97.50 p/therm.

“The latest forecasts show some warmer temperatures to be expected in the coming days before settling at seasonal normal levels until mid-January,” analysts at Auxilione said in a daily market report.

“This will be a level of comfort for the market, alongside healthy supply with the arrival of plenty of LNG (liquefied natural gas) expected in the coming weeks in addition to maintaining strong gas stocks,” Auxilione said.

Although European gas storage inventories have started to fall they remain around record highs for the time of year, at almost 94% full, according to latest data from Gas Infrastructure Europe.

LNG send-out for northwest Europe was forecast at 2,534 gigawatt hours a day (GWh/d) on Tuesday, up slightly from 2,527 GWh the previous day, LSEG data showed.

“Four new (LNG) arrivals (are) scheduled at UK terminals. Eleven cargoes are currently headed to the UK, 10 of these before year-end, ensuring robust levels of send-out look set to continue,” LSEG analyst Wayne Bryan said.

In the European carbon market, the benchmark contract CFI2Zc1 edged down by 0.30 euro to 70.08 euros a metric ton.
Source: Reuters (Reporting By Susanna Twidale; editing by Nina Chestney)