Prices of EUROPE GAS continue to fall as the market watches developments in Iran war
Dutch and British wholesale contracts for gas extended losses on Tuesday, following a sharp fall in the previous session. This was after U.S. president Donald Trump announced that he would delay military strikes against Iran, and that an agreement with Iran could be reached "within five or less days".
Data from the Intercontinental Exchange revealed that the Dutch front-month contract for the TTF hub had fallen 3.22% to 54.85 Euros per Megawatt Hour (MWh) at 0947 GMT.
On Monday, it fell to a low intra-day of 53.74 euro/MWh.
The British 'contract for April is 1.39% lower at 141.28 p/therm after trading in the range?132.79 - 159.47 pence/therm on Monday.
"The market relaxed in hopes of a near-peace (deal), but the underlying picture is still highly unstable. The continued war operations are causing the energy outlook to be more fragile. The gas market will, as a reaction to Trump's announcements, continue to closely follow the situation relating to the U.S./Israeli-Iran conflict, said LSEG analyst Dzmitry Dzmitry.
Israel's military confirmed that Iran fired multiple missile waves at Israel on Tuesday. Mohammad Baqer Qalibaf, Iran's powerful speaker of parliament and the person who was said to be the Iranian interlocutor during the negotiations by an Israeli official as well as two other sources knowledgeable about the matter, said that no negotiations had occurred.
He wrote: "No negotiations with the U.S. have taken place, and fake news has been used to manipulate financial and oil markets in order to escape the quagmire that the U.S.
Temperatures in north-west Europe will begin to drop tomorrow and continue through the weekend. Local 'distribution zone' demand (which refers to heating gas demand) is forecast 263 gigawatt hours per day higher, at 2667 GWh/d, according to LSEG data.
Gas Infrastructure Europe's data shows that EU gas storage sites are 28.48% occupied, down from 33.8% a year ago.
The benchmark contract on the European carbon markets was down by 0.63 euros at 68.63 Euros per metric ton. (Reporting and editing by Nina Chestney; Marwa Rashad)
(source: Reuters)
