European natural gas prices dip but remain high due to weather, supply issues

Investing.com -- European natural gas prices have seen a minor decrease in early trade but overall continue to remain high for the month. This is largely due to predictions of colder weather and concerns over supply following the cessation of Russian gas transit via Ukraine.

The benchmark Dutch TTF contract has experienced a 1.2% decrease, now hovering at 49 euros per megawatt hour. Last week, it had broken the 50 euros mark following the confirmation of halted Russian pipeline flows through Ukraine. This halt was due to the expiration of Gazprom (MCX:GAZP )'s transit deal.

Analysts at ING have noted that the European gas market is receiving additional support from the forecast of colder-than-usual weather for the next two weeks. This could potentially lead to a quicker-than-expected decrease in storage levels.

They further noted that while the current storage levels should be sufficient for Europe to get through this winter without issue, the refilling of storage during the injection season could prove to be a more substantial task than last year.

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Source: Investing.com