European gas prices correct downwards

European gas prices fell overall yesterday, pressured by profit taking and the drop in parity prices with coal for power generation. While both EUA and coal prices were down, the drop was stronger for the latter. It seems to have been triggered by news that Chinese authorities are more and more concerned by soaring domestic coal prices and that they pledged to act to curb the overheating.

On the pipeline supply side, Norwegian flows weakened yesterday to 285 mm cm/day on average, compared to 293 mm cm/day on Friday, still significantly below the 315 mm cm/day of early May. As for Russian flows, they were very slightly down, at 331 mm cm/day on average, compared to 332 mm cm/day on Friday.