for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

EUROPE GAS-Prices rise on lower Russian supply, colder weather

LONDON, Sept 28 (Reuters) - British and European wholesale gas prices rose on Tuesday on lower supplies from Russia and falling temperature across the region.

* The British day-ahead contract was 4.75 pence higher at 178.00 p/therm by 0817 GMT.

* The October gas price at the Dutch TTF hub, a European benchmark, was up 6.87 euros at 84.00 euros per megawatt hours (MWh).

* Russian supplies via the Yamal-Europe gas pipeline fell on Tuesday by more than half from Monday, the Interfax news agency reported citing data from grid operator Gascade.

* “A strong bullish signal this morning is provided by the sharp and unexpected drop in Russian imports,” Refinitiv gas analysts said.

* Also supporting prices was cooler average temperatures in the United Kingdom which are expected to drop below seasonal normal levels on Tuesday and Wednesday, according to Refinitiv Eikon data, and forecasts of falling temperature across north-west Europe by the end of the week.

* British industrial demand is also expected to increase due to government support that has helped to restart several fertiliser plants to boost nitrogen production.

* French Finance Minister Bruno Le Maire said on Tuesday he expected rising energy prices to last for a “few more months”.

* Analysts expect extreme price volatility as the market moves closer to the winter gas season which begins on Oct. 1.

* The Q4 UK price rose by 16.30 pence to 213.00 p/therm, its highest level yet.

* However, Britain’s gas system was 31 million cubic metres (mcm) over-supplied on Tuesday, with supply forecast at 217 million cubic metres (mcm) and demand at around 186 mcm, National Grid data showed.

* Peak wind power generation was forecast at 10 gigawatts (GW) on Tuesday rising to 11.5 gigawatts (GW) on Wednesday, Elexon data showed. Higher wind output typically reduces gas demand from power plants.

* The benchmark Dec-21 EU carbon contract was up 0.93 euro at 65.30 euros per tonne, hitting a fresh record high.

* The benchmark Dec-21 British carbon contract rose by 3.65 pounds to a new high of 75.00 pounds/tonne. (Reporting by Bozorgmehr Sharafedin; editing by Nina Chestney)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up