Prices for gas in Europe are mixed as traders take into account geopolitical risks, weather and outages in Norway
The European benchmark wholesale gas price was mixed on Friday. Prices in Britain were higher due to outages in Norway, while Dutch prices were lower because of mild weather. This slightly offset concerns about a possible escalation? in the Middle East.
LSEG data revealed that the Dutch March contract?at the TTF hub?was down 0.57 euros at 31,35 euros per Megawatt Hour (MWh), which is $10.85/mmBtu by 0904 GMT.
The contract for April dropped by 0.62 euro to 31.35 Euro/MWh.
Prices rose in the British market. Prices in the British market rose.
Daniel Hynes is a senior commodity strategist with ANZ Research. He said that European?gas prices rose late on Thursday as traders prepared for possible U.S. Military action?in Middle East, and due to lower Norwegian pipeline gas supply.
The demand for heating could also be low. He added that temperatures are expected to stay above the seasonal averages through March, which will limit heating demand. Data from infrastructure operator Gassco shows that Norwegian pipeline gas nominations were at 316 million cubic meters (mcm), their lowest level this year, on Friday morning. Outages at Ormen Lange and Oseberg, as well as Aasta Hansteen contributed to the low number. Oman, the mediator, said that on Thursday, both Iran and the United States made progress in their talks about Tehran's nuclear programme. However, a breakthrough to avert possible U.S. strikes amid a massive buildup of military remains elusive.
LSEG analyst Wayne Bryan stated that prices are likely to?stick? to a range of 30-32 euros/MWh seen throughout the week.
He added that "Fundamentals by themselves would suggest a relatively stable market. However, the geopolitical background remains elevated, and is, as seen yesterday, capable to override otherwise directional signals."
Gas Infrastructure Europe's data shows that milder weather in Europe also slows the?depletion rate of gas storage facilities. These sites are now at 30.19% full after losing around a percentage point from last Friday.
The benchmark contract on the European carbon markets was up by 0.27 euros to 71.24 euro per metric ton. (Reporting and editing by Nina Chestney; Nora Buli)
(source: Reuters)
