Prices remain stable as the supply is strong and peace talks in Ukraine fail.
The Dutch and British wholesale prices of gas were stable on Wednesday morning. They were close to a 19-month low as the peace talks between Russia, the U.S. and Ukraine on ending the conflict in Ukraine failed to find a solution and gas supplies remained strong.
LSEG data shows that the benchmark Dutch front-month contract was lower by 0.16 euros at 27,85 euros per megawatt (MWh) at $9.50/mmBtu at 0924 GMT.
The contract reached an intraday low on Tuesday of 27,53 euros/MWh, a rate not seen since the middle of April 2024.
The British day-ahead contracts was down by 0.05 pence to 72.30p/therm.
The market believes that prices will continue to fall as long LNG exports from the USA to Europe remain high.
Analysts at LSEG predicted that the liquefied gas sent out to Northwest Europe on Wednesday would be 60 gigawatts/day higher at 2,120 GWh/d.
Mild temperatures also reduced demand for gas heating.
After a five hour Kremlin summit between Donald Trump and Vladimir Putin's top envoys, the U.S. and Russia failed to reach an agreement on a potential peace deal that would end the conflict in Ukraine.
Markets were also unmoved when news broke that the European Council and the European Parliament had reached an agreement on the gradual phase-out of Russian gas imports until 2027, as part of a move to reduce dependence on Russian energy.
In a daily market report, analysts at Mind Energy stated that "Europe is expecting a large increase in LNG imports from the U.S."
The benchmark contract on the European carbon markets was 0.44 euros higher, at 82.26 euro per metric ton. (Reporting by Susanna Twidale, Editing by Janane Vekatraman).
(source: Reuters)
