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European gas prices dropped significantly yesterday, pressured by lower residential demand due to higher temperatures and higher Norwegian supply. Indeed, Norwegian flows recovered yesterday, averaging 273 mm cm/day, compared to 253 mm cm/day on Wednesday, after power has been restored at the Kollsnes gas processing plant. As for Russian flows, they were very slightly down yesterday, at 331 mm cm/day on average, compared to 332 mm cm/day on Wednesday.
The drop in parity prices with coal for power generation (both EUA and coal prices were down) provided additional downward pressure.
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