Prices of EUROPE GAS trade at a sideways level as the market waits for clarity on sanctions
The wholesale gas prices in the Netherlands and Britain were not much different on Friday morning, as the market awaited news about whether the U.S. would impose new sanctions against Russia.
LSEG data shows that the benchmark Dutch front-month contract was 32.92 euros per Megawatt Hour (MWh), or $11.20/mmBtu at 0728 GMT. This is a decrease of 0.11 Euro.
The Dutch October contract is down 0.36 euros at 33.24 Euro/MWh.
The British front-month contract for gas was down 0.29 pence, at 81.11 p/therm. However, the British day-ahead price was up 0.25 p/therm.
"Sentiment is tense on the geopolitical scene." "Today marks the deadline by which Russia must respond to the U.S. ultimatum on ceasefire, and secondary oil tariffs are being considered," LSEG Analyst Oleh Skrynyk stated
The energy impact of a meeting between Donald Trump, the U.S. president, and Vladimir Putin, the Russian president in the next few days is also uncertain.
The oil prices dropped on Friday, as the latest round U.S. Tariffs weighed down on the economy and the likely upcoming Trump/Putin discussions raised the possibility of an easing of sanctions against Russia.
Skrynyk of LSEG said that prices would likely trade in a sideways fashion or perhaps even a little higher as the year progresses.
He added that gas demand is expected to increase in the power sector next week, as wind power production will be lessening. A heatwave in France may also have an impact on nuclear power generation because of cooling water restrictions.
Gassco, the infrastructure operator, reported that supplies in Norway were stable with 340 million cubic meters (mcms) of gas per day being nominated as of Friday.
Gas Infrastructure Europe has released the latest figures showing that 70.7% of Europe's storage sites are full.
Analysts at Energy Aspects wrote in a recent note that Europe is making good progress with its stockbuild, but the current European gas prices could lead to LNG cargoes being diverted to Asia. The flow of LNG to Europe may also drop over the next few months.
The benchmark contract on the European carbon markets was up by 0.95 euros at 72.72 euro per metric ton. Nora Buli, reporting from Oslo; Nina Chestney, editing.
(source: Reuters)
