EUROPE GAS-European gas prices drop on warmer temperatures and US gas price drops
The benchmark British and Dutch wholesale gasoline prices dropped on Tuesday morning, as warmer temperatures were expected to?curb demand. This was followed by a market that had seen prices plummet in the U.S. after freezing temperatures eased.
LSEG data shows that the benchmark?Dutch Front-Month Contract at the TTF Hub was down 2.17 Euros at 32.30 EUR per Megawatt Hour, or $11.18 /mmBtu by 0910 GMT.
This week, the contract is down more than 20%.
Analysts at Engie EnergyScan said in a daily report that the move was triggered by an easing of geopolitical risk and the strong downward correction on the U.S. Gas market.
U.S. Natural Gas Futures dropped 19% on Monday, as forecasts showed a?big change in weather conditions to near-normal through?mid February. Production also increased as frozen gas wells began to thaw.
Donald Trump, the U.S. president, said on Saturday that Iran is "seriously speaking" with Washington. This signaled a deescalation in tensions between both countries and eased fears of a possible conflict.
The Dutch April rate was lower by 1.21?euros, at 30.56 Euro/MWh.
The British day-ahead contracts was down 6.63 pennies at 81.75 pence/therm.
This morning, we have again noted?milder predictions. In a daily note, Ulrich Weber, a LSEG analyst, said that not only the forecasts for tomorrow but also those for next week are warmer.
On Tuesday, European gas supplies were strong as well. LSEG data shows that the liquefied natural-gas send-out at France's Fos Cavaou Terminal was increased to 50 gigawatts/day on Tuesday from zero.
The benchmark contract on the European carbon markets was up 0.50 euro at 83.78 Euros per metric ton. (Reporting and editing by Jan Harvey; Susanna Twidale)
(source: Reuters)
