Prices edge higher as lower LNG supply offsets weak demand
LONDON, May 30 (Reuters) -British and Dutch gas prices edged higher on Tuesday morning as lower supplies of liquefied natural gas (LNG) offset weak demand.
The benchmark Dutch front-month contract TRNLTTFMc1 inched up by 0.28 euro to 25.13 euros per megawatt hour (MWh) by 0953 GMT according to Refinitiv Eikon data.
The equivalent front-month British contract TRGBNBPMc1 rose by 0.60 pence to 58.60 p/therm. The British within-day contract TRGBNBPWKD was up 5 pence at 61.00 p/therm.
“On the bullish side, exports from Norway remain subdued… LNG sendout (in Britain) is also down with South Hook nominating down 10 million cubic meters/day (mcm/d) today and Isle of Grain down 12mcm/d,” Refinitiv analyst Tim Crump said in a daily research note.
In Europe, supply from the France's Monitor LNG terminal was reduced to 35% of capacity on Tuesday, Crup said, with the site fully shutdown from June 3-11 for maintenance.
Traders said prices have also been buoyed by some technical buying after price falls over the past few weeks to two-year lows have left the market looking over-sold.
The relative strength index (RSI) of the Dutch-front month contract was below 30 on Tuesday morning according to Refinitiv Eikon data, a threshold indicating that a stock or commodity may be due for an upwards correction.
Gas flows from Russia via Ukraine remained stable. Russia's Gazprom GAZP.MM said on Tuesday it will ship 40.7 million cubic metres (mcm) of gas to Europe via Ukraine, the same level as on Monday.
In the European carbon market, the benchmark contract CFI2Zc1 was down 1.66 euro at 81.10 euros a tonne.
How much of Europe’s gas storage is filled https://tmsnrt.rs/3JPbVvW
Russian gas volumes to Europe https://tmsnrt.rs/3dMnW9G
British and Dutch gas prices https://tmsnrt.rs/3WLENLe
Reporting By Susanna Twidale; editing by Nina Chestney
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