Dutch and British wholesale gas prices declined on Monday morning as warmer temperature forecasts dented demand while supply remained stable.

The benchmark front-month contract at the Dutch TTF hub was down by 0.57 euro at 34.80 euros per megawatt hour (MWh) by 0819 GMT. The August contract was down 0.53 euro at 35.17 euros/MWh, LSEG data showed.

In the British market, the day-ahead contract was down 0.75 pence at 83.05 pence per therm.

“The temperatures in Northwest Europe are already expected to be above normal today after a cooler last week and should remain that way throughout the forecast horizon with an even warmer next week,” LSEG analyst Ulrich Weber said in a daily research note.

The warmer temperatures coincided with stable demand and after fears of possible disruptions to gas supply from Russia to Europe via Ukraine were allayed.

Last week there were reports of shelling in the town of Sudzha, the last operational trans-shipping point for Russian gas exports to Europe via Ukraine, but flows were unaffected, the Ukrainian gas transmission operator said on Friday.

“The news failed to provide a lasting support for prices as there was no mention of any damage to the gas infrastructure,” analysts at Engie EnergyScan said in a daily research note.

Russian gas producer Gazprom GAZP.MM said it would send 42.4 million cubic metres of gas to Europe via Ukraine on Monday, up from 42 mcm on Sunday.

Gas supplies from Norway were also stable with total Norwegian export nominations flat at 328 million cubic metres per day, LSEG data showed.

In the European carbon market, the benchmark contract CFI2Zc1 fell by 0.11 euros to 68.17 euros per metric ton.
Source: Reuters (Reporting by Susanna Twidale; editing by Jason Neely)