EUROPE GAS-Prices rise modestly on milder weather forecasts

10/26/2021 | 06:04am

Oct 26 (Reuters) - British and European wholesale gas recorded modest gains on Tuesday morning on milder weather forecasts amid but concerns remain over low gas storage in Europe.

* The British day-ahead gas price gained 1.50 pence to 2.10 pounds per therm by 0924 GMT.

* The TTF equivalent was up 0.40 euros at 89.40 euros per megawatt hour (MWh).

* The Dutch wholesale gas price for November was 2.45 euros higher at 90.60 euros per megawatt hour (MWh).

* Temperatures in the UK are expected to rise this week, and mild weather is expected this week over continental Europe, Refinitive Eikon data showed.

* "Our outlook for today is slightly on the bearish side on weaker LDZ and gas for power consumption forecast on the day ahead, while import from Norway has not recovered due to extended field unavailability," Refinitiv analysts said.

* LDZ is local distritbution zone demand which mostly reflects heating.

* Low natural gas deliveries from Russia have brought the restocking of natural gas in Europe to a standstill of late, Commerzbank analysts said.

* According to Gas Infrastructure Europe, natural gas storage facilities across Europe are only 77% full.

* The analsysts said current temperatures are mild enough to avoid destocking, but that is likely to change soon.

* "The weather is warmer, yet not too much wind. I think people are again waiting for any reason to sell, LNG coming in (to Europe) could help ease the pressure but the fact that we've started using storage is a worry on everyone's mind," a gas trader said.

* The benchmark Dec-21 EU carbon contract gained 0.28 euros at 59.27 euros a tonne. (Reporting by Marwa Rashad; editing by Nina Chestney)

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