Wholesale gas prices in the Netherlands and the UK fell on Monday morning following forecasts for milder-than-forecast temperatures.
The benchmark Dutch front-month contract at the TTF hub fell by 2.13 euros to 32.72 euros per megawatt hour (MWh), or $11.39 per mmBtu, as of 0926 GMT, according to data compiled by LSEG.
Prices in April in the Netherlands fell by €1.73 to €30.67/MWh. The UK front-end fell 8.25p to 82.25p for the day.
Average temperatures in northwestern Europe are expected to be milder than previously expected by Friday, according to LSEG data.
Additionally, LSEG gas analyst Dozmitry Daukharevich said that liquefied natural gas shipments are expected to gradually increase starting tomorrow.
Nineteen shipments are scheduled to arrive at terminals in northwest Europe over the next two weeks.
“U.S. feed gas volumes have remained stable in recent days, supporting a solid LNG shipment outlook,” he added.
As of Friday, average gas flows to the United States’ eight large LNG export plants had increased to 18.5 billion cubic feet per day (bcfd) so far this month, up from 17.8 bcfd in January. This was matched by December’s monthly record high of 18.5 bcfd.
Iran’s top diplomat said on Friday that Oman-brokered nuclear talks with the United States have gotten off to a “good start” and are set to continue, in remarks that could help allay fears that the Middle East could move closer to war if a deal is not reached.
About 20% of the world’s LNG trade passes through the Strait of Hormuz between Oman and Iran.
In the European carbon market, the benchmark contract rose by €1.65 to €80.38 per tonne.
(Report: Nina Chesney)
