Prices dip on higher Norwegian exports, bumper stock levels

LONDON, July 10 (Reuters) - British and Dutch gas prices mostly edged lower on Monday morning on a stronger supply of gas from Norway and as high gas stocks weighed on the market.

The benchmark front-month Dutch contract was down 1.10 euro at 32.25 euros ($35.34) per megawatt hour (MWh) by 0825 GMT, according to Refinitiv Eikon data.

The Dutch weekend gas price was down by 0.55 euro at 32.15 euros/MWh.

The British front-month contract was down 1.73 p/therm at 80.13 p/therm, ICE data showed.

Gas exports from Norway were up on Monday following the return to service of some infrastructure following maintenance.

“Total Norwegian exports nominations are at 264 million cubic metres/day (mcm/d), 14 mcm/d up from Friday with Continental flows at 241 mcm/d, up by 10 mcm/d from Friday,” Refinitiv analyst Tomasz Marcin Kowalski said in a daily research note.

High gas storage levels in Europe were also weighing on prices.

“With EU gas stocks full at 79% on average, we are approaching the point where gas-fired power producers will no longer have to fear too much competition from gas suppliers,” analysts at Engie EnergyScan said in a market note on Monday.

“Weak renewable generation (which is the case now) will still push them into the gas market, but they will not need to overbid to acquire that gas,” EnergyScan said.

Flows of gas from Russia to Europe via Ukraine remained stable. Russia's Gazprom said it would send 40.7 mcm of gas to Europe via Ukraine on Monday, compared with 40.8 mcm on Sunday.

In the European carbon market, the benchmark contract edged up by 0.43 euro to 86.59 euros a tonne. ($1 = 0.9126 euros)