The price of EUROPE Gas is rising on the back of cooler temperatures in advance of Russia-Ukraine discussions
The Dutch and British gas price rose slightly on Thursday morning, as demand increased due to the cooler temperatures and market anticipation of news about Ukraine-Russian peace talks.
LSEG data shows that the benchmark Dutch front-month contract rose 0.46 euros to 35.21 Euro per megawatt hour or $11.55/mmBtu at 0818 GMT.
The Dutch July contract increased by 0.43 euros to 35.33 Euro/MWh.
The British day-ahead contracts was up 0.03 pence to 79.03p/therm.
In a daily market report, Engie EnergyScan analysts said that a strong weather pattern will likely lead to colder temperatures than normal in continental Europe until mid-next-week, before a possible cooling trend resumes.
LSEG data show that the slight decrease in temperature led to a rise in gas demand for north-west Europe. The previous session saw a rise of 107 gigawatts/day.
However, global events weighed heavily on the market.
Geopolitical developments such as the ongoing Ukraine/Russia peace talks in Istanbul may cause some volatility. The likelihood of a breakthrough is limited, especially with Donald Trump and President Putin not in attendance," said LSEG Analyst Wayne Bryan.
Putin proposed on Sunday direct negotiations with Ukraine at Istanbul, Turkey. However, the Kremlin announced late on Wednesday a delegation which did not include its president.
The benchmark contract on the European carbon markets was down by 0.51 euros at 71.82 euro per metric ton. (Reporting by Susanna Twidale, editing by Nina Chestney).
(source: Reuters)
