The contract earlier dipped to 47.99 euros/MWh, its lowest since August 2021. "The risk premium is being sold off. We are coming out of winter with OK storage and LNG looking pretty good," one trader said. "I think we keep on grinding down until you get a supply disruption that is quite big."
European gas storage remains nearly 64% full, Gas Infrastructure Europe data showed. There is also a steady flow of liquefied natural gas (LNG) tankers headed for import terminals in northwest Europe. The healthy storage levels have reduced the chances for any long-lasting bullishness despite colder weather forecasts, analysts at Energi Danmark said in a morning report. The Dutch day-ahead contract was down 2.80 euros at 48.70 euros/MWh. In the UK market, the day-ahead contract fell by 4.00 pence to 123.50 pence per therm while the within-day contract traded 3.75 pence down at 122.25 p/therm. Norwegian gas pipeline nominations for supply to Britain rose on Tuesday. In the European carbon market, the benchmark contract hit 100 euros ($106.57) a tonne for the first time, reflecting the increased costs that factories and power plants must pay when they pollute. By market close, it was up by 1.77 euros at 100.12 euros a tonne. This level should tempt some to take profit and, coupled with low liquidity, prices could quickly fall again, Engie EnergyScan analysts said in a morning note. "This is supportive for gas. If carbon keeps getting more expensive it will be cheaper to convert back to gas," a European gas trader said. "At what level will that start to threaten gas reserves and make people worried, I would say not before the summer when people notice we're using way too much gas likely" he added.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ How much of Europe’s gas storage is filled Russian gas volumes to Europe British and Dutch gas prices ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Nora Buli in Oslo and Marwa Rashad in London; Editing by David Goodman and Mark Potter)
Messaging: nora.buli.thomsonreuters.com@reuters.net))