EUROPE GAS-European gas prices fall amid weaker demand, peace talk uncertainty
Dutch and British gas prices fell on Tuesday morning, as forecasts for strong wind power output lowered demand. The market also awaited more news regarding the U.S. Iran peace talks.
ICE data shows that the benchmark Dutch front-month contract was EUR0.93 lower at EUR48.16/MWh? or around $16.44/mmBtu - by 0819 GMT.
ICE data shows that the British June contract is down 2.59 pence to 116.5 pence per therm.
Price action will remain headline driven. Fundamentals are slightly softer. While local distribution zone demand (primarily household) is on the rise, a weaker gas for power?consumption offsets this increase, said Wayne Bryan, LSEG's?head of European Gas?Research.
LSEG data shows that the demand for non-local distribution zones, which include power sector demand, will be 214 gigawatts per day lower on Wednesday, mainly due to an increase in renewable production, primarily from wind power.
After rising?around 7 % on Monday after the Tasnim News Agency reported that Tehran suspended indirect talks with Washington, gas prices also fell.
But, U.S. president?Donald Trump later said on Monday that talks with Iran were ongoing.
In a daily market report, analysts from?Engie EnergyScan stated that "in other words, uncertainty still exists and the market doesn't yet know what direction to take."
The 'Iran conflict' has caused the Strait of Hormuz to be closed, causing a spike in global gas and oil prices.
The benchmark contract on the European carbon markets was EUR0.49 lower at EUR78.68 per metric ton.
(source: Reuters)
