Dutch and British wholesale gas prices fell on Friday morning on expectations of warmer temperatures and strong supply from Norway.

The benchmark front-month contract at the Dutch TTF hub TRNLTTFMc1 was down 0.77 euro at 34.60 euros per megawatt hour (MWh) at 0807 GMT, while the September contract TRNLTTFMc4 was down 0.52 euro at 36.20 euros/ MWh.

In the British market, the front-month price TRGBNBPMc1 was down 1.33 pence at 84 pence per therm.

“The latest temperature forecast is mostly in line with the previous weather run, expecting temperatures to fluctuate between 0.8 degrees (Celsius) and 3.8 degrees above the seasonal norm for the next 14 days,” LSEG analyst Tomasz Marcin Kowalski said in a daily market update.

LSEG data showed total Norwegian export nominations increased by 18 million cubic metres/day (mcm/d), to 286 mcm/d due to higher available capacity at the Kollsnes gas processing plant and Troll gas field.

Prices had risen over the past few days on fears that Russia could halt gas flows to Austria’s OMV after the company said on Wednesday supplies from Gazprom GAZP.MM may be suspended in connection with a foreign court ruling, without identifying the case.

Traders said technically the price rise had looked overdone and there could be some profit taking on Friday.

The relative strength index (RSI) of the Dutch front-month gas contract had risen above 70 on Thursday according to LSEG data, a threshold indicating that a stock or commodity may be due for an downwards correction.

The RSI had risen fallen back below 70 by Friday morning, the data showed.

In the European carbon market, the benchmark contract CFI2Zc1 was down 0.81 euros to 75.00 euros a metric ton.
Source: Reuters (Reporting By Susanna Twidale; editing by Nina Chestney)