LONDON, Jan 16 - Dutch and British gas prices edged lower on Tuesday morning as strong supply an expectations of milder temperatures weighed on prices.
The benchmark front-month contract at the Dutch TTF hub was down 0.15 euro at 29.75 euros per megawatt hour (MWh) by 1025 GMT, LSEG data showed.
The March contract fell by 0.30 euro to 29.85 euros/MWh.
In Britain, the front-month contract was down by 1.17 pence at 72.95 pence per therm.
Temperatures are expected to turn milder next week, curbing demand for gas for heating, while supplies of gas via Norwegian pipelines and shipments of liquefied natural gas (LNG) have remained strong.
“Starting this weekend, temperatures will jump above the seasonal long-term averages which are likely to suppress even further demand. For market participants, winter is already over,” analysts at Engie EnergyScan said in a daily market note.
The dip in prices also came despite continued fears over possible disruptions to LNG shipments with QatarEnergy earlier this week pausing shipments via the Red Sea amid further escalation in the region after U.S. and British forces launched dozens of air strikes against Houthi forces.
Four tankers used for shipments of Qatari LNG have resumed course after pausing for several days, LSEG shiptracking data showed on Tuesday.
“An eye will be kept on developments in the Red Sea and any potential impact to LNG shipping, although with increased military presence protecting commercial shipping in place this risk may be limited,” analysts at consultancy Auxilione said in a daily research note.
Europe’s gas stores have started to fall amid the colder weather but are still currently 79% full according to latest Gas Infrastructure Europe data.
In the European carbon market, the benchmark contract slipped 1.67 euros to 65.58 euros a metric ton. (Reporting By Susanna Twidale; Editing by Nina Chestney)