LONDON, – Dutch and British wholesale gas prices edged lower on Monday morning as supply remained strong with rising demand from warmer temperatures across much of Europe offset by weaker demand for heating.
The benchmark Dutch front-month contract at the TTF hub was down 0.55 euro to 32.35 euros per megawatt-hour or $11.11/mmBtu, by 0802 GMT, LSEG data showed.
The Dutch August contract was down 0.57 euro at 32.88 euros/MWh.
The British front-month contract was down 1.1 pence at 75.50 p/therm.
Gas supply from Norway increased as maintenance eased.
Total Norwegian export nominations were up 14 million cubic metres/day to 319 mcm/d, LSEG data showed.
“In Europe demand remains weak, albeit the severe heat will drive some cooling demand in the power sector. As wind generation is low, more gas will be needed, despite strong solar,” LSEG analyst Ulrich Weber said in a daily research note.
Temperatures were forecast to hit 34 degrees Celsius in some parts of Britain on Monday, which was nearing the hottest June day record of 35.6C from 1976, the country’s Met Office said.
In Europe, temperatures also hit over 40C in Italy, Spain and Greece over the weekend.
“The risk is very much focused on Tuesday and Wednesday where temperature anomalies rise to 8°C above normal,” analysts at Engie EnergyScan said in a daily research note.
In the European carbon market, the benchmark contract was down 0.71 euro at 70.25 euros a metric ton.
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