EUROPE GAS - Prices rangebound as market focuses on Russia-Ukraine News
The Dutch and British gas price were not much different on Tuesday morning, as the market awaited news about the Ukraine-Russian peace talks that will be held later this week. Also, warm weather continues to limit demand.
LSEG data shows that the benchmark Dutch front-month contract rose 0.18 euros to 35.60 Euro per megawatt hour or $11.59/mmBtu at 0807 GMT.
The contract reached 36.25 euro/MWh on Monday, its highest since April 16. This was boosted by the news that the U.S. had agreed to lower tariffs with China, which brightened the economic outlook.
The Dutch day-ahead contracts was up by 0.40 euros at 35.75 Euro/MWh.
The British day-ahead contracts was down by 1.00 pence to 80.5 p/therm.
In a daily note, LSEG analyst Wayne Bryan said: "There have been no significant changes to the fundamental outlook for the market. We therefore expect rangebound trading today."
He said that prices may become more volatile depending on geopolitical developments later in the week.
Donald Trump, the U.S. president, offered to attend a possible Ukraine-Russia meeting in Turkey this week. This was in response to European countries pressing the Kremlin for a ceasefire of 30 days in the Ukraine war.
Analysts at Northern Gas and Power stated in a daily note that, "While it's unclear how these talks will end up, any good news is sure to bring some relief to the markets."
The European Union said on Tuesday that it did not intend to resume its imports from Russia, even after the potential peace agreement between Ukraine and Russia.
Dan Jorgensen, the Commissioner of the United States, made his comments after Russia confirmed last week that the topic of gas shipments into Europe was being discussed in talks between Russia and America.
The benchmark contract on the European carbon markets was down 0.35 euros at 73.06 euro per metric ton. (Reporting by Susanna Twidale, ediitng Nina Chestney).
(source: Reuters)
