European prices up as demand remains strong

European gas prices increased yesterday, supported by the downward revision of temperatures for the end of next week (initially, they were expected to increase above normal) and the relative weakness of pipeline flows. Indeed, Russian flows were down yesterday, at 322 mm cm/day on average, compared to 329 mm cm/day on Wednesday. Norwegian flows were also lower, averaging 299 mm cm/day, compared to 308 mm cm/day on Wednesday (and still significantly below the 344 mm cm/day of last week).

The rise in parity prices with coal for power generation (both coal and EUA prices were up) provided additional upward pressure.