Dutch benchmark price slips to fresh 17-month low

Feb 21 (Reuters) - The Dutch benchmark wholesale gas contract slipped to a new a 17-month low on Tuesday morning, as healthy supply offset colder weather forecasts.

The front-month contract at the Dutch TTF hub, the benchmark for European gas trading, was down by 2.60 euros at 48.90 euros/MWh by 0940 GMT, Refinitiv Eikon data showed.

Earlier, the contract dipped to 47.99 euros/MWh, its lowest level since August 2021.

"The risk premium is being sold off. We are coming out of winter with OK storage and LNG looking pretty good," a trader said.

"I think we keep on grinding down until you get a supply disruption that is quite big," the trader said.

European gas storage remains nearly 64% full, Gas Infrastructure Europe data showed.

There is also a steady flow of liquefied natural gas (LNG) tankers headed for import terminals in north-west Europe.

The healthy storage levels have reduced the chances for any long-lasting bullishness despite colder weather forecasts, analysts at Energi Danmark said in a morning report.

Temperatures in north-west Europe for mid-March were forecast less cold than on Monday, but Britain still faced a drop to much below normal, Refinitiv data showed.

The Dutch day-ahead contract was down 2.40 euros at 49.10 euros/MWh.

In the UK market, the day-ahead contract fell by 5.00 pence to 122.50 pence per therm, and the within-day contract traded down 5.00 pence at 121 p/therm.

Norwegian gas pipeline nominations for supply to Britain rose on Tuesday.

In the European carbon market, the benchmark contract pulled back by 0.43 euros to 97.92 euros a tonne.

On Monday, it reached a new record of 99.99 euros/tonne.

The market may make another attempt at reaching 100 euros/tonne on Tuesday, though this should tempt some to take profit, and coupled with low liquidity prices could quickly fall again, analysts at Engie EnergyScan said in a morning note.