British and Dutch wholesale gas prices fell on Dec. 16 morning on expectations that temperatures would rise next week which would curb demand for heating which has been high this week amid a cold snap across Europe.

The British within-day contract was down 38.00 pence at 305.00 pence per therm by 0934 GMT, according to Refinitiv Eikon data, while the day-ahead contract fell by 48.00 pence to 295.00 p/therm.

The Dutch benchmark contract for January fell by 11.10 euros to 123.40 euros per megawatt hour.

“The latest (weather forecast) is notably milder for the next week both in the UK and Northwest Europe, suggesting that mild temperatures next week will stay longer than the previous (forecast) indicated,” analysts at Refinitiv said in a daily research note.

Local distribution zone demand, which is primarily used for heating, is expected in Britain at 179 million cubic meters/day (MMcm/d) on Dec. 12, Refinitiv data showed, 93 MMcm lower than previously expected.

Healthy gas stocks also weighed on prices.

“Despite the strong increase in net storage withdrawals in the past days, EU gas stocks remain comfortable,” analysts at Engie EnergyScan said.

Europe has been drawing on its gas storage reserves over the past week but sites remained almost 86% full on Dec. 14, according to latest Gas Infrastructure Europe data.

Traders said attention is also focused on a meeting of EU energy ministers on Dec. 19 to discuss a possible cap on gas prices.

Ministers this week failed to reach agreement on the proposal after months of infighting among countries who disagree on whether the measure would help or harm their efforts to contain soaring energy prices and inflation.

Meanwhile, the Intercontinental Exchange has warned it will consider relocating its gas trading hub to outside of the European Union, if Brussels agrees a plan to cap gas prices.

In the European carbon market, the benchmark contract was down 1.57 euros at 83.93 euros a tonne.

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