EUROPE GAS-Prices stable with balanced supply and demand, high gas stocks

British and Dutch gas prices were stable on Friday morning with supply and demand fairly balanced and high gas stocks dampening prices.

The British day-ahead gas price was 0.50 pence higher at 80.00 pence per therm by 0715 GMT, Refinitiv Eikon data showed.

The Dutch front-month contract was 0.10 euro higher at 34.85 euros per megawatt hour (MWh), while the day-ahead contract fell by 0.09 euro to 34.56 euros/MWh, Refinitiv Eikon data showed.

“For DA (day-ahead) we expect rangebound trading to continue in the absence of any major changes to the fundamental picture over the past 24 hours,” Refinitiv analyst Wayne Bryan said in a daily research note.

Bryan said the stable market is reflecting the lack of price drivers and the comfortable storage picture in Europe.

Europe’s gas storage sites are 62.5% full, latest data from Gas Infrastructure Europe showed.

“The latest long term temperature forecasts show to expect a warmer than average June, which may help limit prices for the coming weeks provided electricity generation from gas remains limited and excess can be directed towards maintaining a strong storage injection trend,” consultancy Auxilione said in a morning report.

In Britain, the gas system was fairly balanced with demand forecast at 219.3 million cubic meters (mcm) and supply at 219.8 mcm, National Grid data showed.

In the European carbon market, the benchmark contract was up by 0.77 euro to 89.15 euros a tonne.
Source: Reuters (Reporting by Susanna Twidale; Editing by Christopher Cushing)