The benchmark Dutch front-month gas contract inched higher on Friday, but held near its 2-year low as expectations of warmer then usual temperatures in June and high gas storage levels weighed on the market.

The Dutch TTF front-month contract was 0.30 euro higher at 30.30 euros per megawatt hour (MWh) by 0946 GMT, close to its lowest level since June 2021.

“The latest temperature outlook continues to show June to be a warmer than seasonal month, which has been expected in the last few weeks forecasts,” consultancy Auxilione said in a report.

Mild temperatures combined with high storage levels are keeping limiting prices, traders said.

Europe’s gas stocks are 64.6% full, the latest data from Gas Infrastructure Europe showed.

On the prompt market, the Dutch day-ahead contract nudged up 0.20 euro to 29.75 euros/MWh.

The equivalent British day-ahead contract rose by 3 pence to 66.75 p/therm, Refinitiv Eikon data showed.

Britain’s gas market was balanced on Friday with demand forecast at 216 million cubic metres (mcm) and supply at 215.9 mcm, National Grid data showed.

“Overall, the NBP (Britsh) DA (day-ahead) could now be tempted to test another support level at 60 p/therm depending on further balance looseness and pressure from a similarly weaker TTF (Dutch) spot contract,” Refinitiv analyst Yuriy Onyshkiv said in a daily research note.

On the European carbon market, the benchmark contract was up 0.56 euro to 90.41 euros a tonne.
Source: Reuters (Reporting By Susanna Twidale; editing by Barbara Lewis)