Dutch and British wholesale gas prices inched down on Friday morning on a milder weather outlook from mid-December and after Russian President Vladimir Putin cancelled a rouble currency conversion requirement for gas buyers.

The benchmark front-month contract at the Dutch TTF hub TRNLTTFMc1 was down 0.27 euro at 46.26 euros per megawatt hour (MWh) by 0919 GMT, while the February contract was 0.31 euro lower at 46.24 euros/MWh.

Although colder weather is expected next week in north-west Europe, Recent forecasts show temperatures above normal levels for the second half of December and first half of January, LSEG data showed.

“With no major change in weather forecasts overnight and a limited duration for the cold episode expected next week, European gas prices could remain under bearish pressure today,” said analysts at Engie EnergyScan.

On Thursday, President Vladimir Putin cancelled the option for buyers of Russian gas to convert currency into roubles at U.S.-sanctioned Gazprombank, suggesting the remaining European buyers of Russian gas could convert their currency into roubles in other banks that are not under sanctions.

“(This) should take some anxiety off of those few European companies that continue to heavily rely on Russian molecules,” said LSEG analyst Yuriy Onyshkiv.

“It also underlines Russia’s current status as a market taker on the European energy market adjusting to the changing environment,” he added.

However, the exact mechanism for future payments by remaining European buyers of Russian gas were not immediately clear.

In the European carbon market CFI2Zc1, the benchmark contract was down 0.25 euro at 67.09 euros per metric ton.
Source: Reuters (Reporting by Nina Chestney)