2024-05-09 09:58:53
Dutch and British wholesale gas prices fell on Wednesday morning, as warm weather and gas restocking in Europe offset concerns about liquefied natural gas (LNG) supplies.
According to LSEG data, the standard contract for the first month of the next month in the Dutch TTF Center fell by 0.27 euros to reach 30.35 euros per megawatt-hour by 08:48 (GMT), according to Reuters.
The Dutch next-day contract fell by €1.05 to €30.35-MWh.
In the British market, the next-day contract price fell by 1.80 pence to 74 pence per therm, and the intraday contract price fell by 2.50 pence per therm, to 774 pence per therm.
“Overall, I think the market was overpriced to the upside, and since inventories are 64 percent full with mild weather, there is no reason to panic now,” one trader said. He added that Norwegian pipeline flows, although declining, are not currently a concern.
Gasco data showed that Norwegian pipeline supplies were flowing at a rate of between 290 and 295 million cubic meters per day during May amid maintenance work, down from flows of 350 million cubic meters per day seen earlier this year.
ANZ Bank’s chief commodities strategist, Daniel Haynes, said in a daily note that LNG prices in North Asia rose this week after Chevron rescheduled the delivery of some cargoes to buyers in Asia due to power outages in… Its Gorgon facility is in Australia.
He added that the damaged production line could stop working for up to five weeks, at a time when demand is increasing during the heat wave sweeping the regions.
However, “European gas prices have failed to catch up with rising Asian gas prices amid healthy storage levels,” Hynes said.
The two markets compete for LNG shipments at the global level, especially if supplies are reduced in one region.
Meanwhile, gas demand is set to fall amid rising temperatures in Europe and despite lower wind energy production through the end of the week, according to LSEG analyst Ulrich Weber.
In the European carbon market, the benchmark contract fell by €0.39 to €70.59 per metric ton.
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2024-05-09 09:58:53