Prices edge down on weaker demand, stronger wind forecast

Reuters

Prices edge down on weaker demand, stronger wind forecast

2024 10월 18 일, 오전 8:58 GMT

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LONDON, Oct 18 (Reuters) -Dutch and British wholesale prices inched down on Friday morning on continued above-average temperatures, weaker demand and expectations of higher wind output.

The benchmark front-month contract at the Dutch TTF hub TRNLTTFMc1 edged down by 0.20 euro to 39.40 euros per megawatt hour (MWh) by 0854 GMT, LSEG data showed.

The December contract was 0.37 euro lower at 39.78 euros/MWh.

In the British market, the weekend contract was down 0.60 pence at 94.90 pence per therm.

Wind power generation is weak in north-west Europe but is expected to strengthen over the weekend. Gas demand from power plants is expected to be roughly flat at the weekend and 1,882 gigawatt hours per day (GWh/d) but for working days next week it is forecast to be 88GWh/d higher at 2405GWh/d, LSEG data showed.

Total Norwegian exports are slightly lower after Norway's Gassco announced some extensions to maintenance outages.

Engie EnergyScan analysts said the spread between Asian and European prices has narrowed significantly in recent weeks.

"So, for U.S. LNG exporters, we are in a price zone where no area clearly stands out as the preferred market. This also explains the relative stability of TTF prices at present," they said.

Escalation of tensions in the Middle East and retaliation against Israel for the killing of Hamas' leader on Thursday was still a concern for the gas market, traders said.

Lebanon's Hezbollah militant group said on Friday it was moving to a new and escalating phase in its war against Israel while Iran said "the spirit of resistance will be strengthened" after the killing of Hamas leader Yahya Sinwar.

Western leaders said his death offered an opportunity for the conflict to end, but Israeli Prime Minister Benjamin Netanyahu said the war would go on until the hostages seized by Hamas militants were returned.

In the European carbon market CFI2Zc1, the benchmark contract was down 0.56 euro at 62.42 euros a metric ton.

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Reporting by Nina Chestney

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