Dutch and British wholesale gas prices traded in a narrow range early on Tuesday as higher temperatures across Europe limited use for heating, and the impact of cooling demand and low wind generation was mostly confined to the power market.

The benchmark Dutch front-month contract at the TTF hub was up 0.37 euro at 33.40 euros per megawatt-hour, or $11.55/mmBtu, by 0848 GMT, LSEG data showed.

The Dutch day ahead contract (TRNLTTFD1) was up 0.25 euros at 32.38 euros/MWh.

The British front-month contract (TRGBNBPMc1) was down 0.3 pence at 77.85 p/therm, while the day-ahead contract (TRGBNBPD1) was down 0.25 pence at 78.00 p/therm.

A heatwave in Europe is expected to end by Thursday. Demand for gas for heating is down 32 gigawatt hour per day at 577 GWh/d on the day ahead, according to LSEG data.

Higher cooling demand led benchmark European power prices to exceed 100 euros per megawatt hour on Monday for the first time since April.

Reduced wind power generation can increase demand for baseload gas generation, but Norwegian gas supply was ample as maintenance ended.

Total Norwegian export nominations were 317 million cubic metres per day with 259 mcm/d destined for the Continent, LSEG data showed.

“Weather fundamentals are mostly unchanged as the heatwave and low wind power generation continues to impact mostly the European power market,” LSEG analyst Ulrich Weber said.

Weber said he expected the gas market to be underpinned, but prices would not be driven higher as France’s Montoir has lowered its nominations for the first half of this month by about 55 GWh/d. Flows from Germany into the Czech Republic for delivery to Slovakia are nominated to be 90 GWh/d higher, with Slovakia receiving 131 GWh/d.

European net storage injections dropped on Monday, and they are expected to drop again on Tuesday. Storage inventories are 58.59% full, data from Gas Infrastructure Europe shows.

In the European carbon market, the benchmark contract (CFI2Zc1) was down 0.71 euro at 70.25 euros a metric ton.
Source: Reuters