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Prices ease as high storage levels limit upside

Thu, 22nd Jun 2023 10:27

June 22 (Reuters) - British and Dutch gas prices eased on Thursday morning, as high storage levels limited any gains from lingering uncertainty over the length and extent of outages at Norwegian gas infrastructure.

The Dutch TTF benchmark front-month contract was down 1.80 euros at 36.10 euros per megawatt hour (MWh) by 0915 GMT, according to Refinitiv Eikon data.

The Dutch day-ahead contract fell 0.77 euros to 36.73 euros/MWh.

Norwegian maintenance changes remain a supportive factor but have been priced in now, a trader said.

The high storage filling levels in Europe and continued lacklustre industrial demand are pinning back any gains, the trader added.

Most of the volume lost from the extended outage at Norway's Nyhamna gas processing plant already seems balanced by liquefied natural gas en route to Europe, the trader said.

"Today, we consider further losses as the most likely scenario in the absence of new signals," analysts at Energi Danmark said in a morning note.

Gas storage sites in the European Union were almost 75% full, according to data from Gas Infrastructure Europe.

In Britain, the day-ahead contract was down by 5.50 pence at 92.00 p per therm, and the within-day price eased 2.40 p to 91.10 p/therm.

Refinitiv analysts forecast day-ahead gas-for-power 15 million cubic metres (mcm) per day lower at 37 mcm/day.

Peak wind power generation is forecast at 2.2 gigawatts (GW) on Thursday, rising to 8 GW on Friday, out of total metered capacity of 22 GW, Elexon data showed.

In the European carbon market, the benchmark contract was 1.97 euros lower at 88.58 euros/tonne.

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