Prices of EUROPE GAS rise after US-Iran talks fall short
Dutch and British gas rates?rose? on Monday, after U.S. and Iran talks failed to reach an agreement to end the war, jeopardizing the fragile two-week truce. The U.S. army also announced that it would begin a blocking of all maritime traffic into and out of Iranian ports and coastal regions on Monday.
Data from the Intercontinental Exchange showed that the benchmark Dutch front-month contract for the TTF hub had increased by 8.8% to 47.50 Euro per megawatt hour at 0754 GMT.
The British contract was up 9.2% to 119.83 pence/therm.
Central Command of the United States announced that the U.S. Blockade would begin at 10 a.m. ET on Monday (1400 GMT) and "will be enforced impartially against vessels of all nations entering or departing Iranian?ports and coastal areas, including all Iranian ports in the Arabian Gulf and Gulf Oman." The U.S. Central Command said that the blockade would begin at 10 a.m. ET (1400 GMT) on Monday. It will be "enforced uniformly" against all vessels of any nation entering or leaving Iranian?ports, coastal areas and all Iranian ports in the Arabian Gulf or Gulf of Oman.
The market has now returned to the 'conditions that existed before the ceasefire. The main question remains whether the U.S. will renew strikes against?Iran. This could lead to?strikes across the energy infrastructure in the region, which would have an impact that lasts beyond the war," explained Saul Kavonic.
The geopolitical developments will lead to a rise in European gas prices. The gains will be greater than those for oil due to the increased volatility in recent weeks as a reaction to these news updates.
He said that domestically, there is little reason to re-pricing due to diverging weather patterns. The lower wind energy generation in the next days will'somewhat offset' rising temperatures. Weber stated that the impact of maintenance is minimal - and the balance will allow for increased gas injections into storage.
The European Union's ability this summer to replenish its LNG storages could be hampered by a prolonged period of limited global LNG availability.
The European Network of Transmission System Operators (Entsog), and the European Commission, have encouraged market participants to fill storages as soon as possible to compensate for lower than expected LNG supplies this summer.
Gas Infrastructure Europe's data shows that EU gas storage facilities were?29.3% filled at the end of last year, compared to around 35% last year.
The benchmark contract on the European carbon markets was down by 0.71 euros at 72.13 euro per metric ton. (Reporting and editing by Susan Fenton; Marwa Rashed)
(source: Reuters)
