EUROPE GAS - European prices rise on the threat of LNG supply due to US-Iran tensions
Dutch and British wholesale prices for gas rose sharply on Thursday, boosted by tensions between Iran and the U.S. that could affect shipping of LNG.
LSEG data revealed that the benchmark Dutch front-month contract at TTF hub had risen by?3.25 euro to 32.70 euros or $11.31/mmBtu as of 0835 GMT.
British gas prices for the day ahead rose 7.75 pence, to 79 cents per therm.
The U.S. deployed "warships" near Iran, according to a Notice to Airmen (NOTAM). The U.S. stated on Wednesday that both sides are'still far apart in some areas after U.S. - Iran talks held on Tuesday in Geneva.
Analysts at ING Research wrote in a note that European natural gas prices have risen, as geopolitical risk in the Middle East has increased.
They added that the concern for the market is any disruptions in LNG shipments through Strait of Hormuz from Qatar, the second largest LNG supplier in the world.
Arne Lohmann, Global Risk Management's chief analyst, says that a milder weather forecast in Europe for the weekend and beyond is reducing some of the geopolitical upside.
Gas Infrastructure Europe data revealed that EU gas storage facilities were 32.5% full last month, compared to 43.3% last year at the same point.
The Italian government approved on Wednesday a package of energy-saving measures, which includes efforts to reduce the difference in price between Italian and TTF gasoline prices.
The benchmark contract on the European carbon markets was up by 0.08 euros at 71.65 euro per metric ton.
Analysts said that carbon prices found some support at 70 euros/ton after a massive sell-off in the previous week, and following speculative traders cutting their net-long position. (Reporting and editing by Nora Buli)
(source: Reuters)
