Dutch and British wholesale gas prices were mixed on Friday morning, as milder weather next week weighed on shorter-ended contracts but colder forecasts further out supported the front month.
The British day-ahead contract was down 0.90 pence at 68.50 p/therm by 0942 GMT, according to LSEG data.
The Dutch day-ahead contract shed 0.35 euros to 28.40 euros/MWh.
Temperatures in north-west Europe are forecast to rise from 0.1 degrees Celisus on average today to 7.3 degrees on Monday, averaging at a similar level all week, LSEG data showed.
Wind power generation in key market Germany could peak at 50 GW next week, and at 17.5 GW in Britain, according to LSEG.
High wind output typically reduces demand for gas from power plants.
Further out, the benchmark front-month contract at the Dutch TTF hub traded up by 0.38 euro to 28.38 euros per megawatt hour (MWh).
Still, the contract remains at levels last seen in early August.
The March contract was down 0.10 euro at 28.30 euros/MWh.
In Britain, the February contract was 0.47 pence higher at 69.52 pence per therm.
“Downward revisions in temperature forecasts overnight now pointing to the return of normal temperatures by the end of January and the beginning of February could provide some support to curve contracts today,” Engie EnergyScan said in a note.
Analysts also continue to monitor the impact of the current Arctic freeze in the United States on liquefied natural gas (LNG) exports, with some plants reporting problems.
Meanwhile, an escalation in tensions in the Middle East poses limited risk to European LNG supply, analysts Energy Aspect said in a weekly note.
At the same time, structurally weak demand and firm supply mean Europe can balance most temperature-backed demand increases without significant price gains and with limited impact gas storage levels at the end of the winter, they added.
Europe’s gas stores were last seen 77.5% full and have fallen steadily amid Europe’s recent cold spell, according to latest Gas Infrastructure Europe data.
In the European carbon market, the benchmark contract inched up by 0.13 euro to 63.14 euros per metric ton.
Source: Reuters (Reporting by Nora Buli in Oslo;Editing by Elaine Hardcastle)