Dutch and British gas prices were mostly lower on Friday morning as expected milder temperatures and strong output from wind farms curbed demand for gas.

The Dutch December contract TRNLTTFMc1 was down by 0.26 euros at 45.60 euros ($49.54) per megawatt hour (MWh) by 1041 GMT, according to LSEG data.

The Dutch day-ahead contract TRNLTTFD1 was flat at 45.60 euros/MWh.

In Britain, the December contract TRGBNBPMc1 fell by 1.15 pence at 114.78 p/therm while the day-ahead TRGBNBPD1 contract was down by 2.3 p at 103.70 p/therm.

“A sharp increase in the windpower forecast early next week in the UK is putting downward pressure on UK gas for power that is now forecast to fall by 26 million cubic metres/day (mcm/d) to 49mcm/d on day-ahead,” LSEG analyst Yuriy Onyshkiv said in a daily research note.

Peak wind power generation in Britain is forecast at 7.7 gigawatts (GW) on Friday soaring to 16.7 GW on Saturday, Elexon data showed.

In Europe, temperatures are forecast to be above normal for the time of year in the first half of the week, Onyshkiv said.

“Looking at fundamentals, gas-for power demand remains particularly weak in Europe since the beginning of October on the back of mild temperatures, strong (renewable) power generation and a lingering energy demand reduction trend in both industrial and residential heating sectors,” analysts at Engie EnergyScan said.

High gas inventories continue to weigh on prices with Europe’s gas stores 99.36% full, latest data from Gas Infrastructure Europe showed.

In the European carbon market, the benchmark contract CFI2Zc1 fell by 0.26 euro to 76.73 euros a tonne.
Source: Reuters (Reporting By Susanna Twidale; Editing by Sharon Singleton)