Wholesale gas prices in Europe were mixed on Friday morning, with Dutch auctions for the coming month rising slightly from transit auctions next week, but fast UK prices fell due to oversupply and milder temperatures.
* The Dutch wholesale gas price for November rose 2.49 euros to 100.00 euros per megawatt hour at 07:58 GMT, after hitting 103.90 on previous exchanges.
* Prices could be supported by a further rise in Asian coal prices, as well as supply uncertainty, over whether Gazprom will reserve gas transit capacity in monthly auctions scheduled for Monday, have said traders.
* However, there is room for a price correction after breaking through some technical resistance levels yesterday, analysts at Engie EnergyScan said.
* Chinese coal prices hit record highs as cold weather hit much of the country and power plants rushed to stock up on coal.
* Fitch Solutions analysts said they expected energy price volatility to remain high through the winter, with prices set to rise further before returning in response to warmer weather .
* However, prices will remain significantly higher than long term averages.
* “There is a high risk that prolonged or extreme weather events could see inventories stay below average for longer, paving the way for still high energy prices at least into 2022, adding to the risk of downsizing. energy consumption at the expense of economic production, âadded Fitch Solutions.
* In the UK market, the day-ahead price fell 6.73 pence to 2.30 pounds per therm, while the weekend contract was 6.00 pence to 2.29 pounds / therm.
* In Britain and northwestern Europe, temperatures are expected to rise slightly above seasonal norms and rise further next week, which could dampen heating demand, according to data from Refinitiv Eikon.
* The UK system has been supercharged by about 34 million cubic meters. Liquefied natural gas emissions are higher than recently, exports lower and wind production forecasts stronger.
* In the UK electricity market, National Grid said on Thursday it expects its 2 gigawatt power link with France, which has been offline for an extended outage, to operate at half capacity a few days earlier than expected.
* The EU benchmark carbon contract of December 21 fell by 0.11 euros to 61.33 euros per tonne.
* UK benchmark December 21 carbon contract fell 0.24 pounds to 66.00 pounds / tonne.
* More than one million carbon permits were not sold in an auction in the UK last week and their sale will now be split over the next four auctions, the scheme’s UK authority said Emissions Trading (UK ETS).
Source: Reuters (Reporting by Nina Chestney)