Dutch and British wholesale gas prices edged lower on Wednesday morning amid stable supply and some profit taking, while escalating tensions in the Middle East lent some support.

The benchmark front-month contract TRNLTTFMc1 at the Dutch TTF hub was down 0.38 euro at 39.00 euros per megawatt hour (MWh), or $12.66 mmBtu, at 0842 GMT, LSEG data showed.

The day-ahead contract TRLNTTFD1 was down 0.10 euro at 38.78 euros/MWh.

In the British market, the day-ahead contract TRGBNBPD1 was 1.5 pence lower at 93.00 pence per therm.

“Geopolitical concerns remain a high worry for the markets despite the underlying fundamentals of the energy complex looking quite strong,” consultancy Auxilione said in a daily research note.

Norwegian exports to the continent remained steady at 225 million cubic metres (mcm) per day, LSEG data showed, while supply of gas from Russia to Europe via Ukraine continued.

Russia’s Gazprom GAZP.MM said it would send 42.4 mcm of gas to Europe via Ukraine on Wednesday, the same as on Tuesday.

“The European gas balance remains comfortable overall and does not justify an additional strong rise in prices,” Engie EnergyScan said.

Europe’s gas storage levels remain high, with storage sites 94.37% full, Gas Infrastructure Europe data showed.

In the European carbon market, the benchmark EU carbon permit contract CFI2Zc1 was down 0.03 euro at 63.58 euros per metric ton.
Source: Reuters (Reporting by Susanna Twidale; Editing by Mark Potter)