Dutch and British wholesale gas prices rebounded on Tuesday morning, after falls the previous day, on expected colder weather and lower wind output.

The benchmark front-month contract at the Dutch TTF hub (TRNLTTFMc1) was 0.67 euro higher at 48.59 euros per megawatt hour (MWh) by 0914 GMT, while the March contract (TRNLTTFMc2) was up 1.52 euros at 48.45 euros/MWh.

In Britain, the contract for March was 0.57 pence higher at 119.39 pence per therm.

“Temperatures are still above normal in most European countries but they are now falling, which should increase gas demand in Local Distribution Zones (LDZ),” said analysts at Engie EnergyScan.

LDZ demand refers to the total amount of gas used by gas consumers connected to gas distribution networks, mainly for residential and commercial heating and industrial uses.

“Temperatures will start to decrease to near normal values by the weekend and wind speeds will be lower than in the past days,” said Georg Muller, metereologist at LSEG.

Lower wind output typically increases demand for gas from power plants.

Pipeline gas supply from Norway and liquefied natural gas send-out were stable.

Asia JKM prices are still well below European gas prices which should keep Europe as the preferred destination for LNG spot cargoes, Engie EnergyScan analysts said.

The European Commission will continue talks with Ukraine on natural gas supplies to Europe and will include Hungary and Slovakia in these talks, according to a statement shared by an EU diplomat and seen by Reuters on Monday.

Hungary has been holding up the renewal of the bloc’s sanctions on Russia, the renewal of which must be through a unanimous vote. The deadline is Jan. 31. As of Friday, Hungary had not yet decided whether to go ahead with the rollover.

In the European carbon market (CFI2Zc1), the benchmark contract edged down by 0.24 euro to 79.12 euros per metric ton.

Source: Reuters