EUROPE GAS-Dutch prices fall in thin trade as storage fills

"Stocks are set to continue to be built further, supported by the finalisation of planned maintenance work and increasing Norwegian flows as of this week," analysts at Energi Danmark said in a morning note. European gas storages are now 85.6% full, with stocks in Germany close to 90%, data from Gas Infrastructure Europe showed.

Dutch gas prices extended a fall from the previous week on Monday as European gas storage continued to fill and with Norwegian gas flows set to pick up, although a UK public holiday limited trading activity. The Dutch front-month contract, the European benchmark, was down 10 euros at 177.50 euros per megawatt hour (MWh) at 0931 GMT, almost 50% below a peak on Aug. 26 of 343 euros.

The Dutch day-ahead contract was down 1.50 euros at 160 euros/MWh. "Stocks are set to continue to be built further, supported by the finalisation of planned maintenance work and increasing Norwegian flows as of this week," analysts at Energi Danmark said in a morning note.

European gas storages are now 85.6% full, with stocks in Germany close to 90%, data from Gas Infrastructure Europe showed. Meanwhile, Norwegian gas flow volumes to continental Europe are expected to rise on Monday.

"The new week starts to the downside once more on the back of this," Energi Danmark added. The holiday in the United Kingdom for the funeral of Queen Elizabeth II should limit trading activity at European gas hubs, analysts at Engie EnergyScan said.

The supply outlook is comfortable, they added, highlighting arrivals of liquefied natural gas (LNG). In addition, closer-to-normal temperature forecasts for the end of the week after a cold spell, combined with a rebound in German wind power generation from low levels expected in the first half of the week may also add to bearish market sentiment, the analysts said. The British day-ahead contract traded via brokers on the continent was seen up 53 pence at 274 pence per therm.

Britain's gas system was nearly 14 million cubic metres (mcm) under-supplied on Monday, National Grid data showed. Peak wind power generation will drop from 4.5 gigawatts (GW) on Monday to 1.9 GW on Tuesday, out of total metered capacity of 19.9 GW, according to Elexon data.

In the European carbon market, the benchmark contract was down 1.97 euros at 71.30 euros a tonne.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)