LONDON, Nov 19 (Reuters) – European and British wholesale gas prices shed gains on Friday for the second day in a row in correction to the spike it saw earlier this week on Russian supply concerns.
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- The British within-day gas contract was down 3.55 pence at 2.109 pounds per therm by 1003 GMT.
- The Dutch day-ahead gas contract was down 0.89 euros at 89.75 euros per megawatt hour.
- The benchmark Dutch front-month contract was down 3.45 euros to 89.05 euros per megawatt hour.
- “The reaction to this week’s Nord Stream 2 news was probably a bit overdone and the market is retracting from that this morning,” said Tamir Druz, managing director at Capra Energy Group.
- Market sentiment is also bearish because of the arrivals of LNG cargoes into Europe this month, a gas trader said.
- “Our forecast indicates an 18 million cubic metres (mcm)/d increase in UK LNG send-out with seven cargo arrivals confirmed to UK terminals by early December and 14mcm/d higher combined IUK and BBL net imports from the Continent next week,” Refinitiv analysts said.
- Gas prices rose earlier this week after Germany’s energy regulator suspended the approval process for Nord Stream 2, a major new pipeline built to bring Russian gas into Europe. [USN:L1N2S80JL]
- Russian natural gas flows through the Yamal-Europe pipeline to Germany have been steady for the past 24 hours on Friday, data from German network operator Gascade showed. [USN:L8N2SA0P5]
- Traders are also watching COVID-lockdown returns across Europe for any potential impact on demand.
- From a fundamental perspective, the UK system was 14.8 mcm oversupplied on Friday, National Grid data showed.
- In other markets the benchmark Dec-21 EU carbon contract was down 0.17 euros at 69.03 euros/tonne.
Reporting by Marwa Rashad; Editing by Susanna Twidale
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