Europe gas prices slip as mild and windy weather curb demand

Dutch and British wholesale gas price weakened on Wednesday morning as milder and forecasts for windier weather limited demand and eased concerns over storage depletion.

The benchmark Dutch front-month contract at the TTF hub was down €0.74 at €29.70 per megawatt hour (MWh), or $10.30/mmBtu, by 09:01 GMT, its lowest level since January 12, LSEG data showed.

Milder forecasts for the weekend and remainder of the month, combined with a lower geopolitical risk premium, weighed on prices, said Arne Lohmann Rasmussen, chief analyst at Global Risk Management.

Progress in negotiations between Iran and the United States has also lowered the risk of a closure of the Strait of Hormuz and a disruption of liquefied natural gas (LNG) supplies from Qatar to the global market, he added. Still, Iran briefly shut down the key shipping choke point for military drills on Tuesday.

Forecasts of warmer weather are also helping ease concerns over low inventories, said Daniel Hynes, senior commodities strategist at ANZ Research.