Dutch and British wholesale gas prices dropped further on Tuesday after losses on Monday, driven by healthy flows of natural gas from Norway, milder forecasts and full storages, while supply concerns over geopolitical tensions also eased.

The Dutch November gas contract fell by 1.32 euros to 47.28 euros per megawatt hour (MWh) by 0812 GMT, after dropping 12.3% on Monday, according to LSEG data.

The December contract was down 0.90 euro at 51.20 euros/MWh.

The British November contract was down 2.56 pence at 118.67 pence per therm.

“The weather forecast has not changed significantly for the Continent and the short and long-term outlooks suggest mostly above-normal temperatures,” LSEG analyst Ulrich Weber said in a morning note.

Further in, the Dutch day-ahead contract traded 2.49 euros lower at 45.01 euros/MWh.

In Britain, the day-ahead contract fell by 4.00 pence to 104.00 p/therm and the within-day contract was down 1.50 pence at 108.50 p/therm.

Full gas storages and recovering shipments from Norway also eased immediate supply concerns, analysts said.

European gas storages were last seen 97.95% full, according to Gas Infrastructure Europe.

Norwegian gas flows were nominated at a steady 329 million cubic metres (mcm) per day, close to the around 340 mcm/day typically seen during the winter season, data from pipeline system operator Gassco showed.

Efforts to contain the spread of the Hamas-Israel conflict should curb the risk of further disruptions to Israel’s gas output and possible impact on Suez canal shipping, Daniel Hynes, senior commodity strategist at ANZ bank said in a report.

Meanwhile, the risk premium for a threat of a worker’s strike at Chevron’s liquefied natural gas (LNG) facilities in Australia could reduce as the company said it continued to work on agreements, analysts at Engie EnergyScan said.

In the European carbon market, the benchmark contract fell by 0.60 euros to 82.75 euros a tonne.
Source: Reuters (Reporting by Nora Buli in Oslo; Editing by Emelia Sithole-Matarise)