Prices drop from record highs in volatile trading

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Dutch and UK wholesale gas prices fell on Thursday afternoon in a very volatile market after hitting new highs in the morning.

* The November gas price at the Dutch hub TTF, a European benchmark, fell from 17.00 euros to 100.50 euros per megawatt hour at 1351 GMT. It was previously trading at a record 155.00 euros per megawatt hour.

* The UK day-ahead contract was down 0.19 pounds per therm to 2.60 pounds per therm, after hitting a new high of 3.55 pounds / therm earlier.

* The cold weather forecast had sent prices to “unbelievable levels” in the morning, with no clear trigger for the retracement, one trader said.

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* “This is not focused on fundamentals. Coal and CO2 are down but that shouldn’t do it, ”he added.

* The EU benchmark carbon contract of December 21 is down from 5.33 euros to 59.39 euros per tonne.

* The UK benchmark carbon contract of December 21 was down 8.80 pounds to 60.60 pounds per tonne.

* European coal API2 coal futures for 2022 have fallen from $ 4.21 to $ 182 / tonne.

* If the gas has increased because players were stopped or had to cover up, it will go away when the wave of buying is over, another trader said.

* Prices may also have fallen due to profit taking due to fears of regulatory intervention by the European Commission or comments from Russian President Vladimir Putin that Russia is shipping more gas, he added.

* Prices increased in the morning in line with higher electricity market rates and forecasts of colder and less windy weather.

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* The German base load for Thursday delivery hit 400 euros per megawatt hour earlier, but the benchmark contract from the previous year was down from 24.50 euros to 135 euros per megawatt hour.

* German wind power supply will plunge 13.5 gigawatts (GW) to an average of just 2 GW on Thursday, according to analysts at Refinitiv.

* In the UK, peak wind generation will drop from 12.5 GW on Wednesday to 7.6 GW on Thursday, according to data from Elexon.

* Storage levels in the UK were 100% full on Wednesday, according to data from Gas Infrastructure Europe.

* European gas prices have also been supported by lingering concerns over scarcity of supply, analysts at Engie Energyscan said.

* Pipeline deliveries from Russia have declined since the summer, as Asian liquefied natural gas (LNG) spot prices hit a record high of nearly $ 40 per million British thermal units (mmBtu) Wednesday. (Reporting by Nora Buli in Oslo; Editing by Nina Chestney)

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