Dutch and British wholesale gas prices were down on Monday morning on a warmer weather outlook and with the market shrugging off the geopolitical developments in Syria.

The benchmark front-month contract at the Dutch TTF hub TRNLTTFMc1 was down 0.81 euro at 45.56 euros per megawatt hour (MWh), or $14.38/mmbtu, by 0948 GMT.

In Britain, the day-ahead contract TRGBNBPMc1 fell by 1.4 pence to 113.5 p/therm.

“Further losses could be recorded today as the weather outlook has been revised warmer over the weekend with the return of above-average temperatures expected next week across Europe,” analysts at Engie’s EnergyScan said in a morning note.

Syrian rebels announced on state television on Sunday they had ousted President al-Assad, eliminating a 50-year family dynasty in a lightning offensive that raised fears of a new wave of instability in a region already gripped by war.

“Escalations in the Middle East took a surprising turn with the long-standing government overthrown in Syria. Whilst it is not expected to cause direct impact to energy markets, any geopolitical activity can cause concern to global markets and it will be closely monitored,” consultancy Auxilione said in a daily note.

Further out temperatures are expected to turn colder towards the end of the year which could lead to strong heating demand, but so far Europe’s gas storage levels remain strong despite faster withdraw than in previous years, Auxilione said.

EU gas stocks are 82.38% full, latest data from gas Infrastructure Europe showed.

In the European carbon market CFI2Zc1, the benchmark contract was down 0.57 euro at 67.74 euros per metric ton.
Source: Reuters (Reporting by Marwa Rashad; Editing by Susanna Twidale)