EUROPE GAS - European gas prices remain stable on US-Iran Peace Deal
The Dutch gas front-month price has fallen to EUR41.95/MWh, the lowest since May 7.
* Shippers said that regaining confidence in the Strait of Hormuz Transit could take weeks.
* Market will remain cautious until Friday's Geneva signing ceremony
LONDON, JANUARY 16 - Dutch and British wholesale gas prices were unchanged on Tuesday after dropping around 10% the previous day as the U.S. signed a preliminary agreement with Iran to end the Iran War and reopen Strait of Hormuz.
ICE data shows that the benchmark Dutch front-month contract for the TTF hub dropped EUR0.187 to EUR42.32/per Megawatt Hour (MWh), which is around $14.361/mmBtu by 0820 GMT.
Early trade saw the contract touch EUR41.95/MWh, its lowest since May 7.
ICE data shows that the British July contract is down 0.52 pence at 100.49 pence per therm after falling around 10% on Monday.
"Over the past three days of trading, the TTF forward month gas future fell around 15%.?But the market is still far above the levels before the war. The market has not yet removed the entire risk premium because of uncertainty about the agreement's stability.
The Iran conflict has led to a near-closure of the Strait of Hormuz. This is where a fifth or more of the world’s LNG passes. It has also pushed up global oil and gas prices. The confidence of shippers in Asia, Europe and North America in the resumption of transit by waterway may take several weeks to regain. Navigation will only resume once safety has been assured.
In a daily note, Ulrich Weber, LSEG's analyst, said that the market for gas will be more cautious on Friday because oil prices are only marginally down.
After arriving in France for the G7 summit, U.S. president Donald Trump announced that Vice President JDVance would be attending a formal signing in Geneva, on Friday.
The benchmark contract on the European carbon markets was EUR0.05 lower at EUR79.97 per metric ton. (Reporting and editing by Nina Chestney; Susanna Twidale)
(source: Reuters)
