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EUROPE GAS-Prices fall on mild weather outlook and strong LNG

British and Dutch wholesale prompt gas prices fell on Friday, with liquefied natural gas tanker arrivals strong and mild weather forecasts for next month.

The Dutch day-ahead contract fell by 14.15 euros to 73.00 euros per megawatt hour (MWh) by 0933 GMT, while the December contract was down 9.00 euros at 104.00 euros/MWh, according to Refinitiv Eikon data.

In the British gas market, the day-ahead contract was down 5.00 pence at 95.00 pence per therm, while the price for working days next week was down 5.00 pence at 90.00 p/therm.

Close to normal temperatures are forecast for north-west Europe in December. The German meteorological office DWD said on Thursday that the country could be in for a mild winter.

From December to Feb. 2023, DWD forecast a mean temperature of at least two degrees Celsius, which would place 2022/23 in the 33% of mildest winters of the reference period 1991-2020.

In Britain, strong winds have also helped to curb power demand. However, wind speeds are expected to drop below the seasonal norm on Monday, before rising again afterwards, Refinitiv gas analysts said.

LNG cargoes to north-west Europe, particularly Britain, remain strong, which could also be putting some pressure on prices, traders said.

In the European carbon market, the benchmark contract CFI2Zc1 was up 0.51 euro at 73.56 euros a tonne.
Source: Reuters (Reporting by Nina Chestney)

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