EUROPE GAS-Global trade fears fuel market volatility
Dutch and British gas rates recovered some of their earlier losses, after increasing on Monday. However, they then fell back down again as fears about a global war leading to a weaker demand for energy fuelled volatility.
LSEG data shows that the benchmark Dutch front-month contract fell 0.55 euros, or $11.55/mmBtu to 35.90 Euros per megawatt hour.
The contract reached 33.65 Euros/MWh earlier in the year, its lowest level ever since September 2024.
The Dutch June contract is down 0.67 Euros at 36.08 EUR/MWh.
The British day-ahead contracts was down by 2.09 pence to 87.41p/therm.
The global financial markets were hammered by Donald Trump's tariff plans on Monday, after he warned that foreign governments would have to pay a "lot of money" in order to remove the taxes he referred to as "medicine".
Gas was following the equities at this time, a trader said.
The benchmark contract dropped around 9% Friday after China announced reciprocal duties on U.S. products, intensifying a trade conflict that has caused investors to price a greater probability of recession.
The gas market was also affected by the expectation of warmer temperatures.
In a daily report, Engie EnergyScan analysts said that "Gas Demand in Local Distribution Zones" (LDZ) has continued to fall amid temperatures above normal in many European countries.
The European gas storage sites finished the winter heating season almost two thirds empty on March 31, and current low prices are expected encourage more injections.
In a daily note, the consultancy Auxilione stated that "fears about being able fill gas storages in this summer has changed and an advantage is being taken to start this process."
The benchmark carbon contract in Europe was down by 1.42 euros, at 62.40 euro per metric ton. (Reporting by Susanna Twidale, Marwa Rashad and Varun H K; Editing and David Evans.)
(source: Reuters)
