EUROPE GAS-European Gas Prices Stable as US-Iran Peace Talks conclude
Dutch and British wholesale gas prices were stable on Thursday morning after Qatar said Iran and the U.S. made progress in indirect discussions focused on the Strait of Hormuz, while low gas storage levels continue to support the market.
ICE data revealed that the benchmark Dutch front-month contract was EUR1.0016 higher at EUR43.795 per megawatt hour (MWh), or approximately $14.66 /mmBtu by?0811 GMT.
The British June contract rose 2.25 pence to 103.94 pence per therm.
The price action today is more likely to be driven by fundamentals, as there are no Doha talks scheduled. The market is still sensitive to headlines and any comments from US or Iranian officials can quickly?influence the sentiment," said Wayne Bryan.
LSEG data shows that the total Norwegian?export nominations are down by 5 million cubic metres/day, to 330 mcm/day. This is due to a supply interruption at Norway's Oseberg oil field.
Wind power in Germany is expected to continue to grow until the middle of next month, reducing the demand for gas in power plants.
Gas storage levels are low in Europe and continue to be a source of concern. Prices have continued to rise.
Mind Energy analysts said that "the pressure on the European gas market is high because of the low storage levels and the French nuclear production reductions, as well as the possibility of new heatwaves across the continent in the next week."
Gas Infrastructure Europe, the latest data on Europe's gas stores, showed that 49.1% of them are full.
LSEG data shows that France's nuclear capacity is currently 44 GW, and will increase to 50 GW by July 8th. LSEG data showed that despite the forecasts of warmer temperatures for next week, there are concerns about possible production cuts due to higher river temperatures.
The benchmark contract on the European carbon markets rose EUR0.41 per metric ton to EUR79.95. (Reporting and editing by Nina Chestney; Susanna Twidal)
(source: Reuters)
