The price of gas in Europe is rising on a slight increase in demand
The Dutch and British wholesale prices of gas rose slightly on Tuesday morning, due to a slight increase in demand. However, the supply remains stable. They continue to trade within a narrow range.
According to LSEG, the benchmark Dutch contract for August deliveries at TTF hub increased by 0.09 euros to 33.20 Euro per megawatt-hour (MWh) as of 0911 GMT.
The contract for the day-ahead was 0.37 euros higher, at 33.50 Euro/MWh.
The British contract was 2.14 cents higher, at 81.00 pence a therm.
Markets seem to have shrugged at the recent developments regarding tariffs, but there is still uncertainty.
U.S. president Donald Trump escalated his trade war on Monday, telling 14 nations - from major suppliers like Japan and South Korea, to minor players - that they will now face dramatically higher tariffs as a result of a new deadline in August.
Trump, however, said that the deadline was "firm" but "not 100% firm".
The total demand for tomorrow is expected to be slightly higher due to a lower wind generation, but the supply from Norway and LNG is stable.
The gas demand for power plants will be higher by 135 gigawatt-hours per day in the days ahead as wind production drops.
LSEG data shows that the average temperatures in North-West Europe will start to rise again tomorrow, and that wind outputs are expected to drop below normal from this weekend until at least July 21.
Prices are expected to remain within the current trading range.
The benchmark contract on the European carbon markets increased by 0.04 euros to 71.24 euro per metric ton. Nina Chestney reports.
(source: Reuters)
