EUROPE GAS-European Gas prices rise as supply risks offset lower demand
The benchmark Dutch and British gas prices climbed a little higher on Monday, after the Yemeni Houthis launched their first attack on Israel at the weekend. This increased the U.S. - Israel war with Iran and raised fears of supply disruptions.
ICE data shows that the benchmark Dutch front-month contracts at TTF hub were up 1.183 euro at 55.36 Euros per megawatt hour or around $18.65 /mmBtu by 0810 GMT.
ICE data showed that the British April?contract rose 3.61 pence to 139.76 cents per therm.
Around a fifth (or more) of the world’s LNG transits the Strait?of Hormuz. However, shipping has been at a standstill through the narrow strait since?the U.S. began its strikes against Iran on?February 28,?.
In a daily note, LSEG analyst Wayne Bryan stated that geopolitical risks remain elevated, and could continue to drive prices across the curve despite softer fundamentals in the near term.
On Monday, oil prices rose by more than 3% to $115 per barrel.
In a daily report, Engie EnergyScan analysts said: "European gas price increases are more moderate... as comforting domestic fundamentals are creating downward pressure (increased wind?generation is a good example).
LSEG data showed that temperatures in Northwest Europe were forecast to be higher than'seasonal norms' at the start of April. Demand from the electricity sector was also expected fall, as renewable -power output such as wind was 'forecast to rise.
The benchmark contract on the European carbon markets was down by 0.17 euros at 71.50 euro per metric ton.
(source: Reuters)
