Prices for gas in Europe rise due to lower winds and tensions between the U.S. and Iran
The benchmark British and Dutch wholesale prices of gas rose, as fears about the increasing tensions between Iran and the United States and the declining wind output increased.
LSEG data revealed that the benchmark Dutch 'contract for March' at the TTF hub had risen by 2.00 euros?to $33.30 per megawatt-hour, or $11.54/mmBtu by 0914 GMT.
The Dutch April rate was up by 0.80 euros at 31.05 Euro/MWh.
The British day-ahead contracts was up 2.62 pennies at 83.05 pence per therm.
Prices have dropped significantly this week since U.S. president Donald Trump said that Iran had "seriously talked" to Washington over the weekend, which eased concerns of conflict.
This?has changed since an Iranian drone has been shot down by U.S. Military and Iran approached a?U.S. A gas trader told Reuters that a tanker was spotted in the area.
The trader said that the market was sensitive to any change in direction of the U.S.Iran relationship.
U.S. Military said that on Tuesday, they shot down an Iranian drone that "aggressively approached" the Abraham Lincoln aircraft carriers in the Arabian Sea. This was first reported by the.
Separately in the Strait of Hormuz, between the Persian Gulf?and the Gulf of Oman a group of Iranian guns boats approached a U.S. flagged tanker north of Oman.
A regional diplomat said that nuclear talks between the United States of America and Iran will take place on Friday in Oman. Trump warned that if there is no deal, "bad things will happen".
LSEG data showed that temperatures in north-west Europe are forecast to increase over the next few days, but colder weather is expected towards the end of the week.
The wind power sector is also in decline. A decrease in wind power output usually increases the demand for gas generated by power plants.
U.S. natural gas futures also rose on Monday due to a slight decline in production, increased gas flow to LNG export facilities and higher forecast demand.
The benchmark contract on the European carbon markets was down by 0.60 euros at 82.51 euro per metric ton. Nina Chestney reports.
(source: Reuters)
