EUROPE GAS - European gas prices are soaring as Trump's deadline for Iran approaches
The benchmark Dutch and British wholesale gas prices were in a tight range on Tuesday after the U.S. rejected the Pakistani-brokered U.S. proposal for an immediate 'ceasefire' and lifting of the effective blockade. Meanwhile, the U.S. was edging closer to its deadline of opening the Strait.
ICE data showed that the benchmark Dutch front-month contract was $0.19 higher than before, at 50.24 Euro per megawatt hour (MWh) or $17.03/mmBtu by 0809 GMT.
The British April contract rose 0.46 pence to 127.36 cents per therm.
Trump stated on Monday that "the whole country could be destroyed in a single night, and this night may be tomorrow night." He promised to destroy Iranian infrastructure and power plants if Tehran did not agree to the deadline.
Trump's pledge?at a White House Press Conference came before a 2000 EDT deadline on Tuesday (0000 GMT, Wednesday) that he had set for Iran to meet U.S. requirements.
Analysts at Engie EnergyScan said that the market was now awaiting the outcome of President Trump's ultimatum. "The evolution of the Middle East situation will be obviously crucial," they added.
Around a fifth of all LNG in the world passes through the Strait of Hormuz, but since U.S. and Israeli strikes began on Iran on February 28, shipping has been at a standstill.
Saku Jussila, LSEG analyst, said that 50 euro/MWh is a "key level" and big changes are needed to break free from the current trading range.
Fundamentally, the forecast for wind power generation is slightly lower but temperatures are?adjusted up?for next weekend. The supply from Norway and liquefied gas is stable.
The day-ahead gas-for-power requirement is expected to rise by 103 gigawatt-?hours/day, or 2,082GWh/d. This is because wind expectations have dropped significantly since last week.
The benchmark contract on the European carbon markets was up by 0.06 euros at 71.75 euro per metric ton. (Reporting by Marwa Rashad, Editing by Nina Chestney).
(source: Reuters)
