Gas prices in the European hub are rising, but high supply is holding back growth

LONDON, May 17 (Reuters) – Gas prices in the Netherlands rose on Wednesday but remained close to a two-year low amid large inventories and weak demand. At the same time, fuel prices are expected to remain low due to the forecast of warmer weather, which will contribute to reducing demand.

Gas futures fronts at the Dutch hub TTF rose 1.81% at 12:51 p.m. Moscow time to €32.58 per megawatt hour. The price of gas with “tomorrow” settlements on the TTF until 12:14 Moscow time increased by 2.28% to EUR 32.35 per megawatt hour.

The cost of gas through UK billing ‘tomorrow’ by 12:49 Moscow time has increased by 2.69% to 76.4p per term, with ‘immediate delivery’ by 12:32 Moscow time it has increased by 6.82% to 77, 66p per term. deadline.

“Today we remain neutral on European gas prices as temperatures in Western Europe are expected to gradually rise above seasonal norms this weekend and LNG terminals will continue to be crowded,” EnergyScan analysts wrote in a morning note.

“Solar and wind peaking this weekend could put additional downward pressure on spot contracts, especially as June TTF prices still have some downside potential,” the analysts added.

According to Gas Infrastructure Europe, European gas storage facilities are 64% full.

UK wind power generation is forecast to peak at 4.3 gigawatts on Wednesday and 2.5 GW on Thursday, bringing the total billed capacity to 22 GW.

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(Marwa Rashad)