Gas prices fall in Europe amid weak demand and mild weather

Wholesale gas prices fell in the Netherlands and Britain on Tuesday, affected by lower demand due to warmer-than-normal weather and ample supply amid stable liquefied natural gas shipments.

The Dutch gas contract for the month of the nearest maturity for the fifth consecutive trading day fell 13.50 euros to 116.50 euros per megawatt-hour by 0858 GMT, the lowest level since mid-June.

The British contract also fell a day before delivery by 23.00 pence to 35.00 pence per calorie unit.

And forecasts in Refinitiv Aikon indicated that the weather for the rest of this week and next will be milder than usual, which reduces heating demand.

The stable arrival of ships carrying LNG to Europe also eased concerns about supply shortages despite Russia’s gradual reduction in gas flows.

However, more than 35 ships laden with LNG are idling off Spain and across the Mediterranean, and ports are still busy unloading.

Markets are also awaiting the European Commission’s proposal to set a cap on the price of natural gas. European Union leaders are due to discuss options this week that include mandatory restrictions to the degree at which prices traded can fluctuate in a single day, according to a draft proposal.

According to analysts, setting price ceilings could put further pressure on gas prices.

According to national grid data, the gas system recorded a surplus of 26.4 million cubic meters in supply in the UK.

In the European carbon market, the main contract fell 0.41 euros to 67.10 euros per ton.