Prices for EUROPE Gas are rising on fears that escalation in the Middle East conflict could disrupt supplies
Dutch and British wholesale prices of gas rose early on Thursday, as fears that an escalation in the Israel-Iran war could disrupt the supply affected the market.
LSEG data show that the benchmark Dutch front-month contract was up 0.05 euros to 39.90 Euros per Megawatt Hour (MWh) / $13.41/mmBtu at 0821 GMT.
The Dutch August contract increased by 0.33 euros to 40.40 Euro/MWh.
The British front-month contracts increased by 2.88 pence to 94.28 per therm.
"We do... see a positive opening on Thursday." This could be due to reports that Donald Trump, the president of the United States, is considering joining the war. That would be an escalation in the conflict.
The supply from the region is steady but there are fears that the passage of vessels through the Strait of Hormuz may be affected.
In a daily note, LSEG analyst Dzmitry Dzhalevich stated that "while no major developments have occurred overnight, there are still concerns about LNG shipping disruptions around the Gulf." "QatarEnergy’s precautionary steps continue to increase sensitivity towards supply risks, particularly with the Middle East situation remaining tense."
QatarEnergy instructed its tankers on Tuesday to stay outside the Strait of Hormuz, and only enter the Gulf the day before loading. Two sources with knowledge of the matter confirmed this.
The benchmark contract on the European carbon markets was down by 0.04 euros at 74.57 euro per metric ton. (Reporting By Susanna Twidale. (Editing by Jane Merriman.
(source: Reuters)
