The European gas-Dutch benchmark is at its lowest point in 2 years as mild weather weighs in

The Dutch gas contract for the first month of the benchmark rose on Friday, but was at its lowest level in 2 years as warmer-than-normal temperatures and higher gas storage levels weighed on the market after a warm June.

The Dutch TTF front month contract was up EUR 0.30 by 0946 GMT to EUR 30.30 per megawatt hour (MWh), approaching its lowest level since June 2021.

“The latest temperature outlook remains a warmer than seasonal month for June, as expected in forecasts over the past few weeks,” the Auxilion consultancy said in a statement.

Traders said moderate temperatures and high storage levels are keeping prices in check.

Europe’s gas supplies are 64.6% full, according to the latest data from Gas Infrastructure Europe.

On the spot market, the Dutch day-ahead contract fell by EUR 0.20 to EUR 29.75/MWh.

The equivalent UK day-ahead contract rose 3 pence to 66.75 p/therm, Refinitiv Eikon data showed.

The UK gas market remained balanced on Friday, with expected demand of 216 million cubic meters (mcm) and supply of 215.9 mcm, data from National Grid showed.

“Overall, NBP (Britsh) DA (day-advance) may now be tempted to test another support level at 60 p/therm depending on balance sheet easing pressures and a similarly weak TTF (Dutch) spot contract, Refinitiv analyst Yuri Onyshkiv said in a daily research note.

On the European carbon market, the benchmark contract gained 0.56 euros to 90.41 euros per tonne.
Source: Reuters (reporting by Susanna Twidale; editing by Barbara Lewis)