British and Dutch wholesale gas prices fell on Friday morning on profit taking after rises the previous day and oversupply in Britain.
The Dutch benchmark contract for January TRNLTTFMc1 was down 13.25 euros at 134.70 euros per megawatt hour (MWh) by 1046 GMT, Refinitiv Eikon data showed. The contract for February delivery TRNLTTFMc2 was down 10.45 euros at 132.75 /MWh.
The British contract for immediate delivery TRGBNBPWKD was 11.00 pence lower at 320.00 pence per therm while the weekend contract TRGBNBPWE fell by 10.00 pence to 325.00 p/therm.
Prices rose on Thursday amid lower wind generation and colder weather so prices were correcting amid profit taking, a gas trader said.
Engie EnergyScan analysts said Dutch January prices on ICE reached an intra-day high on Thursday supported by panic buying by suppliers servicing /commercial consumers and by power generators.
At that level, they were above the five-day high and the 20-day high, which has triggered profit taking and selling by financial participants, they added.
“If physical actors keep their calm, admitting that even if EU gas stocks are falling they remain comfortable (they were 92.08% full on 30 November), there will then be a chance of seeing prices return durably below their 1-year average,” they said.
The UK system was over-supplied by nearly 13 million cubic metres (mcm), National Grid data showed.
Nominations for gas from Norway are up 7 mcm at 99 /day, after the ramp-up of flows towards the FLAGS system, Refinitiv gas analysts said.
For north-west Europe, the gradual rise of French nuclear capacity is a bearish factor if it continues along the upward forecast trajectory over the next few days, they added.
Temperatures are forecast to fall from the start of next week until mid-December in Britain and northwest Europe but rangebound temperatures are seen in the second half of December, Refinitiv Eikon data showed.
In the European carbon market, the benchmark contract CFI2Zc1 inched up by 0.07 euro to 85.29 euros a tonne.
