Gas prices in Europe are rising on a strong supply
The Dutch and British wholesale prices of gas rose slightly Tuesday morning. They traded in a narrow band, mainly due to the strong supply, and comments from U.S. president Trump, who suggested a shorter deadline for Russia's agreement to a ceasefire.
LSEG data shows that the benchmark Dutch front-month contract was 33.58 euros or $11.18 per megawatt hour at 0900 GMT. This is an increase of 0.66 euros.
The Dutch contract for September was up by 0.71 euros at 34.16 Euro/MWh.
The British day-ahead gas price increased by 0.10 pence to 80.50 pence a therm.
Trump gave Russia a deadline of 10-12 days to end the war in Ukraine, or else face the consequences. This underscored his frustration at Russian President Vladimir Putin for the conflict that has lasted three-and-a-half years.
"Europe is a major importer of LNG." "Any disruptions in such supply would make it difficult to refill its storage facilities," said Daniel Hynes senior commodity strategist at ANZ.
The Norwegian Troll gas field will see a 5 million cubic meter per day reduction in flow until the 1st August, and the restart of Hammerfest LNG Terminal has been delayed three days.
LSEG data shows that residential demand is expected to continue to decline as temperatures are predicted to rise in Northwest Europe.
We expect TTF to trade in a sideways fashion today, reflecting the largely stable fundamental background. "The prompt demand is broadly in line with the previous forecasts," says LSEG analyst Yuriy Onieshkiv.
The benchmark carbon contract in Europe was down by 0.21 euros at 71.13 euro per metric ton. (Reporting and editing by Mrigank Dahniwala; Marwa Rashad)
(source: Reuters)
