EUROPE GAS-European gas prices rise as hopes dim for US-Iran peace deal
Dutch and British gas deals?rose? on Tuesday, as hopes for a peace deal? faded? after Donald Trump said that a ceasefire was "on life-support" with Iran following Tehran's refusal of a U.S. offer to end the conflict.
Data from Intercontinental Exchange (ICE), showed that the benchmark Dutch front-month contracts at the TTF hub were up 1.16 Euros?at 47.39 Euros per Megawatt Hour (MWh), which is $16.28/mmBtu by 0823 GMT.
The British contract was up by 3.42 pence to 116.85 cents per therm.
Iran has demanded a halt to all wars including in Lebanon where U.S.-allied Israel fights Iran-backed Hezbollah militants. Tehran also stressed its sovereignty over Strait of Hormuz and demanded compensation for?war?damage. It also called for an end to the U.S. Naval Blockade.
After reading the garbage that they sent us, I would say it is the weakest. Trump, who has repeatedly warned that the ceasefire would be ended, said to reporters, "I didn't finish reading it."
Analysts at Engie EnergyScan say that this leaves the Strait of Hormuz closed and there is no end to the war in sight. They also add that the short-term trend is bullish.
Market participants are closely watching Trump's visit to China on Wednesday. Iran will be one of the?topics that he and Chinese?President Xi Jinping discuss.
Ulrich Weber, LSEG analyst, said that news about the upcoming U.S. China summit could affect geopolitical sentiment.
The average temperature in Northwest Europe is expected to rise by 0.9 degrees Celsius this Wednesday, but overall will remain 2-3 degrees Celsius below the normal.
LSEG data shows that gas demand for heating will increase by 78 gigawatt 'hours' per day in the next day.
The benchmark carbon contract in Europe was down by 0.39 euros at 76.79 euro per metric ton. (Reporting and editing by Sonia Cheema; Marwa Rashad)
(source: Reuters)
