LONDON, Sept 25 (Reuters) - Dutch and British wholesale gas prices rose on Monday morning to multi-week highs after an extension to Norwegian maintenance outages, but forecasts of warm weather could limit the upside.
The Dutch October contract rose 2.70 euros to 42.80 euros per megawatt hour (MWh) by 0856 GMT, hitting its highest intraday level since August. 22, according to LSEG data, while the day-ahead contract was 3.45 euros higher at 44.10 euros/MWh.
In the British market, the day ahead contract rose by 4.40 pence to 109.00 pence per therm while the October contract rose by 6.50 pence to 110.00 pence/therm, the highest intraday level since June. 15, LSEG data showed.
Norwegian gas system operator Gassco extended the shutdown of the Skarv field over the weekend to Oct. 2 then again this morning until Oct. 8.
"This leads to the slower Norwegian supply than expected limiting storage injections. This can potentially point towards a bullish driver," said Marina Tsygankova, LSEG analyst.
Europe’s gas stores are 94.7% full, the latest data from Gas Infrastructure Europe showed.
Analysts at Engie's EnergyScan said that short-covering activity above the 40 euros per megawatt hour (MWh) mark and the roll-out of positions ahead of the expiry of TTF options this week may continue to provide support to the prompt today.
However, the warmer revision to temperature forecasts for early October should exert downward pressure on prices, they said.
In Britain, LSEG's Tsygankova said that the ever-changing Norwegian maintenance schedule adds bullish uncertainty to the market, while a drop in LNG flows from Friday adds to the bullish factors.
She said that gas for power consumption is expected to increase by 7 million cubic meters per day (mcm/d) on the day head.
In the European carbon market, the benchmark contract inched up by 0.58 euro to 84.72 euros a tonne.
(Reporting by Marwa Rashad; Editing by Miral Fahmy)