EUROPE GAS-EU Gas prices stable as market waits for progress on Iran talks
Dutch and British wholesale gas prices were unchanged on Friday morning, as the markets continue to wait and see what happens with peace talks between Iran and the United States. Meanwhile, a heatwave is boosting prices in Europe.
By 0847 GMT the benchmark Dutch front-month contracts at TTF hub were down EUR0.27 to EUR43.91/per Megawatt Hour (MWh), or about $14.74/mmBtu.
The British June contract was nearly flat at 104.50 cents per therm.
The recent price increase appears to be driven by sentiment, which leaves prices open to profit-taking if there are no more supply disruptions.
He said that heatwave risks would support prices and that concerns about high river temperatures limiting French nuclear output could be a factor.
More than 30% of French reactors are cooled by river water. The temperatures in north-west Europe are still above normal and there is a chance that another heatwave will occur between July 10 and 15.
Analysts from Engie's EnergyScan report that investment funds have reduced their net-long positions in the TTF during the week ended June 26 by?30 Terawatt Hours, to 154 TWh. This is after they had decreased them by 51 TWh the prior?week.
Investment funds, like other market participants, remain cautious. They are waiting to see if the resumption of traffic through the Strait of Hormuz triggers a?rebound in European LNG imports, before they sell in larger volumes.
Gas Infrastructure Europe has reported that Europe's gas storage is 49.22% full, down from 59.15% a year ago.
The benchmark contract on the European carbon markets increased by EUR0.03 per metric ton to EUR79.48. (Reporting and editing by Nina Chestney; Marwa Rashad)
(source: Reuters)
