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Prices mostly lower on weak demand

Fri, 23rd Jun 2023 09:52

June 23 (Reuters) - British and Dutch gas prices were mostly lower on Friday morning on weak demand and slightly higher Norwegian exports.

The Dutch benchmark front-month contract was down 4.90 euros at 32.30 euros per megawatt hour (MWh) by 0842 GMT, while the weekend contract, according to Refinitiv Eikon data.

The British July contract fell by 12.50 pence to 80.00 pence per therm but the day-ahead price was 4.00 pence higher at 91.00 pence per therm.

Soft consumption over the next couple of weeks, combined with slightly higher Norwegian exports were weighing on prices.

Norwegian piped exports are nominated 7 million cubic metres (mcm) higher than the day before at 223 mcm this morning, Refinitiv Eikon data showed.

Shell has resumed maintenance work at Norway's Nyhamna gas processing plant, which had been postponed last week due to a problem with the facility's cooling systems, the company said in a statement late on Thursday.

"Norwegian outages are scheduled to ease over the next couple of weeks but the increased exports are likely to be directed toward north-west Europe and away from a rather loose UK system," said Refinitiv gas analyst Yuriy Onyshkiv.

European storage levels remain 30% higher than the five-year average at 79 bcm and continued injections at June’s pace would push storage to 95% full by mid-September, according to consultancy Energy Aspects.

In the European carbon market, the benchmark contract inched down by 0.52 euro to 89.63 euros a tonne.

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