EUROPE GAS - European gas prices fall as the supply increases
Dutch and British gas rates edged lower on Wednesday as a result of a comfortable supply, which offset the concern about the ongoing disruption in the Strait of Hormuz.
ICE data revealed that the benchmark Dutch front-month contract was EUR0.987 lower at EUR46.485/megawatt hour, or about $15.87/mmBtu at 0816 GMT.
ICE data shows that the British June contract is down?2.22 pennies at 113.1 cents per therm.
Dzmitry Dzhalevich, LSEG analyst, said in a research note that "from a fundamental perspective...the?situation appears to be rather bearish." LSEG data shows that the total Norwegian exports have risen by 5 million cubic meters/day to 293mcm/d, and 17?cargoes?of liquefied natural -gas are expected in Northwest Europe within the next two weeks.
The Iran conflict led to a near-closure of the Strait of Hormuz, through which a fifth of world LNG passes. This has put pressure on global gas and oil prices.
Recent LNG tankers passing through the Strait have boosted traders' expectations that the waterway may reopen in the near future, adding to global supply.
Analysts at Rabobank, however, said that they expect the strait to be closed in effect until September.
In a?research?report Rabobank analysts said that a Hormuz 'closure'?up to September could lead to serious?market interventions, including export restrictions, forced reshapings of energy flows, and the removal of further energy sanctions. This would impede market pricing signals. The benchmark contract on the European carbon markets was EUR0.97 higher at EUR79/metric ton. (Reporting by Susanna Twidale, editing by Barbara Lewis).
(source: Reuters)
