European gas prices fall on weak demand, higher Norwegian supply
LONDON, Oct 3 (Reuters) - Dutch and British wholesale gas prices fell on Tuesday morning on weak demand and increased Norwegian supply.
The British November contract was down by 3.85 pence at 93.30 pence per therm, while the December contract was 11.30 euros lower at 110.50 p/therm by 0905 GMT, according to LSEG data.
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In Dutch market, the November contract was 1.60 euro lower at 37.20 euros per megawatt hour (MWh), while the December contract was 1.05 euros lower at 42.75 euros/MWh.
"Demand remains weak, storages robust and temperatures are above normals and forecast to remain there for most of October," said Wayne Bryan, head of European gas research at LSEG.
"Lingering concerns about Norwegian supply have fallen away over recent days as output increased and there are no significant amendments to existing planned works," he added.
The BBL pipeline between the Netherlands and Britain has flipped to import mode to Britain, meaning there are no flows through it to continental Europe for now as it only switches direction a few times a year.
Peak wind generation in Britain is forecast at 16.3 gigawatts (GW) on Tuesday and 14 GW on Wednesday, out of total metered capacity of around 22 GW, Elexon data showed.
In Britain, wind power output is expected to increase later this week, which typically lowers gas-for-power demand.
In north-west Europe, solar production is still strong and forecast to remain above normals for a couple of weeks, LSEG data showed.
"We favor a continuation of the bearish trend for today as wind power generation forecasts for next week have been revised higher overnight while temperature forecasts remain globally above seasonal norms until mid-October," said analysts at Engie EnergyScan.
(Reporting by Nina Chestney)