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EUROPE GAS-Prices mostly higher on winter concerns, energy complex gains

Mon, 27th Sep 2021 09:56

Sept 27 (Reuters) - British and European wholesale gas
prices were mostly higher on Monday on expected higher demand,
concerns over winter supplies and gains in other energy markets.

* The British within-day contract was 11.00
pence
higher at 171.00 p/therm by 0846 GMT.

* The UK November contract rose by 5.25 pence
to
190.00 p/therm.

* The October gas price at the Dutch TTF hub, a European
benchmark, was up 2.60 euros at 74.00 euros per
megawatt hours (MWh).

* Consumption in Britain and north-west Europe is expected
to
increase due to falling temperatures.

* But concerns over winter supply remain.

* "The curve remains very strong with the global tight
energy
market," said one trader, highlighting a power crunch emerging
in China.

* Oil prices rose for a fifth straight day on Monday with
Brent
heading for $80 amid supply concerns as parts of the world sees
demand pick up with the easing of pandemic conditions.

* The market remains nervous about a potential supply
squeeze in
case of a cold autumn and winter given low storage levels and
Russian supply concerns, analysts at Energi Danmark said.

* "Weak stock levels, high Asia JKM prices (which should
keep LNG
supply to Europe at relatively low levels) and high coal prices
remain supportive for European gas prices and additional
increases are likely," Engie Energyscan analysts added in a
daily report.

* However, Britain's gas system opened long, with supply
forecast
at 191 million cubic metres (mcm) per day and demand at around
169 mcm, National Grid data showed.

* Total Norwegian exports to Europe and the UK were up 17
mcm at
327 mcm/day on Monday morning, Refinitiv data showed.

* The benchmark Dec-21 EU carbon contract was up
1.31
euro at 64.25 euros per tonne after hitting a fresh record high
of 64.85 euros/tonne on Monday morning.

* The benchmark Dec-21 British carbon contract
rose 1.25
pounds to a new high of 66.00 pounds/tonne.
(Reporting by Nora Buli in OSLO; Editing by Nina Chestney)

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