EUROPE GAS-European plunge on milder forecasts, U.S.-Iran diplomacy
Dutch and British wholesale price fell to a two-week low on Monday as the forecasts cooled down and on hopes tensions between Iran and the United States would ease.
The Dutch benchmark front month?contract?" at the TTF hub fell 4.92 euros to 34.73 euros per Megawatt Hour (MWh) or $12.06/mmBtu by 0904 GMT. This was its lowest level since January 19.
The contract for April fell from 32.50 Euros/MWh to 2.90 Euros.
Gas prices for the next week dropped 10.50 cents to 92.00 pence per therm.
Analysts at Mind Energy say that prices opened down due to a combination of milder weather predictions over the weekend and easing tensions between the US and Iran.
Ulrich Weber, LSEG's analyst, says that the short-term forecasts imply a milder weekend next week and also a milder outlook for the long-term. News of a new round in peace talks between Ukraine, Russia and Abu Dhabi this week could also affect prices downwards, he said. U.S. president Donald Trump said Iran is "seriously speaking" with Washington. This signals a deescalation of a simmering conflict.
Tankers that serve Qatar, the second largest LNG exporter in the world, would be affected by any disruptions.
Weber from LSEG said that milder forecasts had not yet?alleviated the storage concerns.
Gas Infrastructure Europe's data shows that EU gas storage facilities were 41.13% full last year. This compares to a five-year annual average of 57%.
The benchmark contract on the European carbon markets was up 1.51 euros, at 82.77 euro per metric ton. (Reporting from Nora Buli).
(source: Reuters)
