Latest News

EUROPE GAS-Prices constant as Norwegian supply offsets global threats

May 31 - Dutch and British gas costs were little changed on Friday, with enhanced Norwegian gas streams next week offsetting concerns over future Russian gas products and strong Asian competition for melted natural gas (LNG).

The benchmark front-month contract at the Dutch TTF center was down by 0.01 euros at 34.92 euros per megawatt hour (MWh) by 0839 GMT, LSEG data showed.

The July agreement was trading 0.09 euros firmer at 35 euros/MWh.

The TTF day-ahead agreement was 0.15 euros down at 34.95 euros/MWh. In the British market, the day-ahead agreement was up 0.5 pence at 84.00 cent per therm.

Present gas prices are considering a risk premium that lifts them above where essential drivers would suggest, one trader said.

Such fundamentals include gas storage at 70% of capability, moderate weather and Norwegian gas flows of 300 million cubic metres ( mcm) per day, the last of which had dropped as low as 178 mcm/day due to the fact that of maintenance failures over the past 10 days.

Extant dangers remain in play from a geopolitical front while OMV supply threat and Russian LNG issues will continue to loom over markets, LSEG expert Wayne Bryan said in a weekly market report.

A ramp-up in Norwegian imports and stronger LNG send-out should lower rates, nevertheless, with LSEG forecasting Dutch day-ahead prices to typical 33 euros/MWh and their British equivalent at 82 p/th next week.

Gas supply from Russia to Europe through Ukraine remains consistent at 42.4 mcm/day.

On the other hand, extreme temperatures throughout Asia are increasing melted gas (LNG) demand in the area, increasing competition for the fuel with European purchasers.

In the European carbon market, the benchmark contract rose by 0.37 euros to 75.85 euros a metric ton.

(source: Reuters)