Gas prices fall on weak demand, mild weather and steady LNG arrivals - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Dutch and British wholesale gas fell on Tuesday as low demand due to warmer-than-usual weather and ample supply due to the steady arrival of liquefied natural gas (LNG) tankers put pressure on prices.

The benchmark front-month Dutch contract dropped for the fifth consecutive trading day and was down 13.50 euros at 116.50 euros per megawatt hour by 0858 GMT, the lowest level since mid-June.

Forecasts on Refinitiv Eikon expect the rest of this week and next to be milder than normal, reducing demand for heating. “The drop has now nearly been completely absorbed by the market, which is a promising omen for Europe at the start of the winter,” analysts at Marex Research said. “We anticipate this LNG inflow to remain steady throughout winter,” they added.EU leaders are set to debate options later this week which include mandatory limits on the degree to which traded prices can fluctuate in a single day, according to a draft proposal.

Peak wind generation was forecast to be around 8 gigawatts today and rise to 15.2 GW on Wednesday, out of total metered capacity of around 20 GW, Elexon data showed.

 

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