EUROPE GAS-Prices steady amid warm temperatures
LONDON, May 10 - Dutch and British wholesale gas prices held steady on Friday morning as warmer temperatures and expectations of stronger renewable power output next week curb demand.
The benchmark front-month contract at the Dutch TTF hub edged up 0.30 euro at 31.25 euros per megawatt hour (MWh) by 0901 GMT, while the July contract was 0.35 euro higher at 31.50 euros/MWh, according to LSEG data.
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In the British market, the within-day price was up 0.05 pence at 74.74 pence per therm.
Analysts at LSEG said temperatures in Northwest Europe were set to average about 17 degrees Celsius by May 13 while temperatures in Britain are expected to reach a daily average of almost 16 C by Sunday some 5 C above normal.
Meanwhile renewable power generation, which has been weak over the past few days is expected to rise again next week.
“Without major changes to the fundamentals price action could be limited,” LSEG analyst Ulrich Weber said in a daily research note.
“Overall, the situation points to the bearish direction. So far, the 30 euros/MWh (for the Dutch-front month) mark appears to give some support. Once that is broken further downside can be expected,” Weber said.
Comments on Thursday from the leader of Yemen's Houthis, Abdul Malik al-Houthi, that the group would target ships of any company related to supplying or transporting goods to Israel regardless of their destination has not had any impact on the market.
“Ships continue to be attacked in the Red Sea, however it is understood energy cargoes have long been diverted away from the area,” analysts at Auxilione said in a daily research note.
In the European carbon market, the benchmark contract was up by 1.63 euros at 74.89 euros per metric ton.
(Reporting By Susanna Twidale;Editing by Elaine Hardcastle)