Prices dip amid warmer, windier weather
LONDON, Nov 27 (Reuters) -Dutch and British wholesale gas prices dipped on Wednesday morning as temperatures turned warmer and stronger wind output curbed demand for gas.
The benchmark front-month contract at the Dutch TTF hub TRNLTTFMc1 was down 0.70 euro at 46.20 euros per megawatt hour (MWh), or $14.23/mmbtu, by 0925 GMT.
The Dutch-day ahead contract TRNLTTFD1 slipped 0.60 euros to 46.00 euros/MWh.
In Britain, the front-month contract TRGBNBPMc1 fell by 1.80 pence to 115.87 p/therm.
"Several factors point to a bearish direction: Warmer and windier revisions to weather forecasts and solid nominations from French (LNG) terminals for November are the more direct fundamental drivers," LSEG analyst Ulrich Weber said in a daily research note.
Weber said average temperatures in north-west Europe are around 2 degrees Celsius above seasonal norms for the day-ahead.
Peak wind power in Britain is forecast at 8.1 gigawatts (GW) on Wednesday, rising to 12.6 GW on Thursday, Elexon data showed.
Reuters reported on Wednesday that Gazprom is making the assumption that no more gas will flow to Europe via Ukraine after Dec. 31 in its internal planning for 2025.
"This is already widely accepted by the market as the current deal expires at the end of December and whilst Russia are keen to extend it, Ukraine have stated for a long time now they have no intention of doing so," consultancy Auxilione said in a daily market note.
Russia’s Gazprom said it would send 42.4 million cubic metres (mcm) of gas to Europe via Ukraine on Wednesday, a volume in line with recent days.
In the European carbon market CFI2Zc1, the benchmark contract was down 1.1 euro at 68.13 euros a metric ton.
EXPLAINER-Is it the end for Russian gas supplies to Europe via Ukraine? nL8N3JZ0H0
EXPLAINER-What happens if Russian gas transit via Ukraine stops? nL8N3JV0SH
Reporting by Susanna Twidale; editing by Nina Chestney
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
