Europe gas prices rise on colder weather, supply risks
UNG•Dutch front-month gas rose €0.91 to €86.50 per MWh and British front-month gas gained 2.75 pence to 215.00 pence per therm as colder forecasts lifted heating demand and shipping disruptions kept supply risks elevated.
1. Prices climb
Benchmark Dutch and British wholesale gas prices rose on Monday morning as colder late-week forecasts pointed to increased heating demand. The Dutch front-month contract gained €0.91 to €86.50 per MWh, while the British contract rose 2.75 pence to 215.00 pence per therm.
2. Supply risks persist
Shipping disruptions in or near the Strait of Hormuz continued to restrict energy and other commodity exports. Production at Iraq’s Khor Mor gas field was halted on Sunday after a suspected drone attack, its joint operator Dana Gas said.
3. Demand and forecasts
Gas-for-power demand is forecast to fall by the weekend and into next week, potentially offsetting some residential demand. Norwegian exports were stable, while northwest European LNG send-out was expected to rise. Energy Aspects raised its average TTF forecast to €107/MWh for December and €102/MWh for the first quarter, citing higher demand forecasts, constrained LNG supply and low early-winter inventories.
