Dutch benchmark remains at 21-month low on lower demand, high stocks

LONDON, May 4 (Reuters) - The European benchmark gas price remained at its lowest level in 21 months on Thursday amid solid inventories, strong flows of liquefied natural gas (LNG) and low consumption due to mild weather and strong winds.

The Dutch TTF front-month contract was down 0.61 euros at 36.20 euros per megawatt hour (MWh) by 0825 GMT, its lowest since late July 2021, Refinitiv Eikon data showed,

"Storage is at 60.2% in Europe, weather forecasts are coming out with milder temperatures and with more wind in the next few days, Norwegian flows remain strong despite maintenance and LNG keeps flowing in," a European gas trader said.

Rising wind power output and milder weather is also limiting demand for gas to be used in power generation and heating.

Rystad analyst Zongqiang Luo said that with gas storage being 60% full, Europe needs only 30.5 billion cubic meters of gas to be injected to achieve the storage target of 90% by Nov. 1, adding that Asian buyers may not be in a rush to compete with European buyers, given the healthy storage in countries like Japan and Korea.

In Britain, the gas system was oversupplied by 24.2 million cubic meters (mcm) on Thursday, National Grid data showed.

British peak wind power generation was expected at 15.4 gigawatts (GW) on Thursday and at 13 GW on Thursday, Elexon data showed.

The British day-ahead contract fell by 3.00 pence to 80.50 pence per therm, its lowest level since November 2022, Refinitiv Eikon data showed.

In the European carbon market, the benchmark contract eased by 1.26 euros to 83.74 euros a tonne.