LONDON, Nov 22 (Reuters) - European and British wholesale
gas prices declined on Monday morning for the third session in a
row as market players monitored the impact of COVID-related
lockdowns on demand, although they said fundamentals still
signalled a bullish outlook.
* The British within-day gas contract was down
2
pence at 2.05 pounds per therm by 1001 GMT and the contract for
next day delivery was down 9.5 pence at 2.05 pounds
per therm.
* The Dutch day-ahead gas contract was down 2.9
euros
at 83.60 euros per megawatt hour.
* The benchmark Dutch front-month contract was
down
4.4 euros to 82.10 euros per megawatt hour.
* "Corona fears are highlighted heavily now," a gas trader
said.
* Market players are monitoring the return of restrictions
to stem
the spread of COVID-19 as cases rise significantly across
Europe.
* Germany has declared an emergency status and there is a
possibility that it could be next along with France to face some
degree of lockdown. Austria and the Netherlands have already
implemented full or partial lockdowns.
* "Our outlook for today is for prices to continue to remain
under
bearish pressure with the potential reintroduction of new
lockdowns across Northwest Europe as case numbers increase by
the day," Refinitiv analysts said.
* Gas traders said market fundamentals remain unchanged with
cold
weather expected and low gas storage.
* There was strong support at 80 euros, the jump-off point
for
last week's gains, another gas trader said.
* "The further fall in temperatures over the coming week can
negate some of bearishness as can falling renewable
output," Refinitiv analysts said.
* Russian natural gas flows through the Yamal-Europe
pipeline to
Germany remained steady on Monday morning, data from German
network operator Gascade showed.
* From a fundamental perspective, the UK system was 5.5 mcm
oversupplied on Monday, National Grid data showed.
* In other markets, the European benchmark December 21 EUA
contract hit a fresh all-time high of 70.43 euros per
tonne on Monday but has since fallen back to 69.48 euros per
tone.
(Reporting by Marwa Rashad; Editing by Nora Buli, Kirsten
Donovan)
National Grid (NG.)
