EUROPE GAS-European Gas Prices Rise amid Uncertainty over US-Iran Talks
Dutch and British wholesale gas prices increased on Tuesday morning because of the uncertainty surrounding the 'U.S. Iran talks', as well as the impact of the Strait of Hormuz on navigation.
ICE data shows that the benchmark Dutch front-month contract was EUR0.92 higher at EUR43.53/per Megawatt Hour (MWh), or about $14.22/mmBtu at 0858 GMT.
The British June contract was up 2.13 pence to 104.69 cents per therm.
"Range-bound trades are expected to persist today, supported by fundamentals that are broadly stable on the immediate... "Some volatility?risk is still tied to geopolitical events, especially around U.S. - Iran talks," Wayne Bryan said in a daily LSEG research?note.
The Iranian and U.S. teams were supposed to meet in Doha, Qatar this week. However, Iran announced on Monday that no meeting was scheduled because weekend missiles fired by both sides had tested the interim ceasefire for ending the four-month war.
Bryan stated that the focus of today's meeting is to manage transit risks and ease regional tensions. This could have an impact on broader energy market sentiment. The shipments through the Strait of Hormuz began to increase?last week, but then decreased following renewed attacks against ships on Thursday which triggered strikes by?the U.S. Since then, the two countries have agreed to resume talks about the strait.
LSEG data shows that the residential gas heating demand forecast is flat over the next few years, with no noticeable shift in consumption.
The benchmark contract on the European carbon markets fell EUR0.05, to EUR80.24 per metric ton.
(source: Reuters)
