Dutch, British gas prices steady as strong Norwegian supply offsets cooler weather
UNG•Dutch and British gas prices traded in a narrow range as strong Norwegian supply offset higher heating demand from cooler weather. The Dutch front-month contract rose €1.47 to €73.85 per megawatt hour, while the British contract gained 3.78 pence to 186.86 pence per therm.
1. Prices and demand
The Dutch front-month gas contract rose €1.47 to €73.85 per megawatt hour by 0829 GMT, and the British front-month contract gained 3.78 pence to 186.86 pence per therm. Northwest Europe was forecast to be 1.8 degrees Celsius cooler, lifting heating demand by 120 gigawatt hours per day to 843 GWh/d.
2. Supply and power demand
Norwegian exports were 323 million cubic meters per day, up 16 million from the previous day. Gas demand for power generation was 2,328 GWh/d as German wind speeds were expected to be well below normal. Higher French nuclear availability and strong solar output were expected to limit additional gas burn.
3. Storage and regional focus
European gas storage was 72% full, with 80% achievable by month-end, analysts at Northern Gas and Power said. The market was also monitoring developments around Iran's response to a US proposal to revive the collapsed Gulf ceasefire.
