EUROPE GAS - European gas prices rise on the back of oil gains and low stock levels
The benchmark British and Dutch wholesale gasoline prices rose on Friday morning. This followed a rise in oil prices despite the fact that U.S. president Donald Trump had extended a pause to attacks against Iran's energy plants.
The benchmark 'Dutch front month?contract was up 0.572 euro at 55.79 Euro per megawatt-hour (MWh) or about $18.80 a mmBtu at 0913 GMT.
ICE data shows that the British April contract is now 140.13 pence for every?therm. This represents a 1.53-penny increase.
Around a fifth of all LNG in the world?passes the Strait of Hormuz. However, shipping has slowed to a near standstill since U.S. and Israeli began their strikes against Iran on February 28, 2017.
Trump has extended his deadline to April 6 for Iran to reopen?the?Strait of Hormuz, or face the destruction of their energy infrastructure. The U.S. also sent thousands of soldiers to the Middle East raising concerns about further escalation.
The oil price rose about 2% to over $110 per barrel on Friday, which was good news for gas as many LNG and pipeline contracts are tied to the oil price.
Low storage levels also boosted gas prices in Europe.
Analysts from trading group Mind Energy said that "Storage levels have dropped to 28 percent in the EU and there are fears that it may be difficult to meet EU storage targets ahead of the next heating seasons." EU diplomats said that the European Commission urged EU countries to begin filling up gas storage caverns on Thursday to prepare for winter next year.
The benchmark contract on the European carbon markets was up by 0.03 euros, at 71.68 euro per metric ton.
(source: Reuters)
