EUROPE GAS-Prices rise on demand increase, ongoing supply concerns

European and British wholesale gas prices rose on Tuesday

  

 European and British wholesale gas prices rose on Tuesday as colder weather increased demand and the market remained nervous about winter supplies from Russia.

* The British within-day gas contract was up 8.75 pence at 2.22 pounds per therm by 1136 GMT, with the day-ahead contract up 14.50 pence at 2.24 pounds per therm.

* The Dutch day-ahead gas contract rose 4.15 euros at 88.50 euros per megawatt hour.

* Colder weather in northwest Europe is boosting heating demand, while a combination of low French nuclear availability and weak wind output might leave more room for natural gas plants to generate, an analyst said.

* Pipeline flows from Norway and Russia were little changed, he added.

* The benchmark Dutch front-month contract was up 4.00 euros at 89.00 euros per megawatt hour.

* The British December contract also gained 13.83 pence to 2.25 pounds/therm.

* Traders said there was nothing specific lifting prices, which had dropped for three consecutive days.

* "Things are still tight, so I would have been surprised if (prices) would have continued falling," one trader said.

* The potential release of crude oil in 30 days from US strategic reserves and the looming spectre of tightening COVID-19 restrictions as case numbers continue to rise could inject volatility into the market, Refinitiv analyst Wayne Bryan said in a morning report.

* News of fresh U.S. sanctions on a vessel involved in completing the contentious Nord Stream 2 pipeline from Russia to Germany could "incentivise the bulls", he added.

* Other said the sanction should have little impact as they would not change the pipeline project, which is completed but awaiting certification, which was facing delays.

* In other markets, the European benchmark December 2021 EUA contract CFI2Zc1 traded down 0.09 euros at 69.82 euros per tonne. It hit an all-time high of 71.24 euros/tonne in early trade.

(Reporting by Nora Buli in Oslo, Editing by Susanna Twidale)


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