Home / Oil & Energy / General Energy News / Europe-Gas: Prices extend record highs on energy rally, low wind, cold

Europe-Gas: Prices extend record highs on energy rally, low wind, cold

Dutch and British wholesale gas prices extended record highs on Wednesday morning, in line with rallying energy markets, and as forecasts of lower wind and cooler weather lift demand and supply remains scarce.

The November gas price at the Dutch TTF hub, a European benchmark, TRNLTTFMc1 rose by 25.60 euros to 143.10 euros per megawatt hour by 0839 GMT. It earlier traded at a record 155.00 euros per megawatt hours.

The British day-ahead contract TRGBNBPD1 was up 0.61 pounds at 3.40 pounds per therm, and also a new record high.

“It’s amazing what we are looking at. Total craziness,” a gas trader said.

Power markets were taking the lead, with German baseload for Thursday delivery TRDEBD1 touching 400 euros per megawatt hour earlier on Wednesday, he added.

German wind power supply will plunge by 13.5 gigawatt (GW) to average only 2 GW on Thursday, Refinitiv analysts said.

In the UK, peak wind power output will drop from 12.5 GW on Wednesday to 7.6 GW on Thursday, Elexon data showed.

“A big theme for gas is that we might need withdrawals next week due to colder weather… but of course nothing justifies these moves,” the trader said.

“Tomorrow through Sunday will be mostly sunny and dry with near normal temperatures. The first half of the next week will be cloudier and cooler with showers. Temperatures will be below normal,” Refinitiv meteorologist Georg Mueller said.

UK storage levels were 100% full on Wednesday, according to Gas Infrastructure Europe data.

European gas prices were also supported by ongoing concerns about supply scarcity, analysts at Engie Energyscan said.

Pipeline deliveries from Russia have been lower since the summer while Asian liquefied natural gas (LNG) spot prices climbed to a record high of nearly $40 per million British thermal units (mmBtu) on Tuesday.

The benchmark Dec-21 EU carbon contract CFI2Zc1 was down 2.71 euroS at 62.01 euros per tonne.

The benchmark Dec-21 British carbon contract UKAFMc1 was down 0.90 pounds at 68.50 pounds a tonne.
Source: Reuters (Reporting by Nora Buli in Oslo; Editing by Nina Chestney)

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping