Exchange prices for natural gas in the United Kingdom and the Netherlands fell on Friday due to forecasts of an increase in wind power generation next week. In addition, less-than-expected consumption in northwest Europe is expected. This has a positive effect on the average cost of gas in Europe.

Natural gas prices in Europe by country

Nearby natural gas futures in the Netherlands traded near the flat line at €187 per megawatt hour around 08.10 GMT. November contracts fell in price by 2.25 euros to 202 euros per megawatt hour.

UK next-day contracts lost 5p to 245p per term. October contracts traded near the flat line, at 290 pence per term.

Colder weather is expected in northwestern Europe next week. However, forecasts for the end of the coming week have been revised upward to slightly higher air temperatures.

According to Refinitiv Eikon, gas consumption for power generation for households in the U.K. will exceed normal levels, while consumption in Europe remains below the seasonal norm.

Wind power generation in the U.K. is expected to increase next week, which could weaken gas demand from power plants.

Peak wind generation in the U.K. is likely to be 4.1 gigawatts on Friday and 5.5 gigawatts on Saturday, while cumulative capacity is about 20 gigawatts, according to Elexon.

Earlier we reported that the pound sterling to the U.S. dollar had fallen to its lowest in 37 years.