EUROPE GAS - Prices fall on mild temperatures and energy attack pause
The Dutch and British gas price fell on Wednesday morning, as the mild temperatures reduced gas demand. Meanwhile, the U.S. made deals with Russia and Ukraine to stop attacks against energy targets and at sea.
LSEG data shows that the Dutch front-month contract fell by 0.15 euros to 40.97 euros per Megawatt Hour (MWh), or $12.96/mmBtu at 0917 GMT.
The Dutch May contract is down 0.75 euros at 40.95 Euro/MWh.
On ICE, the British day-ahead contract fell by 0.80 pence to 99p/therm.
Ulrich Weber, LSEG analyst, said that the major factor for a bearish trend is an improvement in weather forecasts especially for the next week.
LSEG forecast working-day-next-week temperatures in Britain up 1.7 degrees Celsius, LSEG data showed, curbing demand for gas.
In Northwest Europe, temperatures are forecast to rise by 0.8 degrees Celsius for the working-day-next-week, which translates to a drop of 276 gigawatt hours/day in gas demand for heating, LSEG analysts said.
On Tuesday, the United States and Russia reached separate agreements to stop their attacks on energy and maritime targets. This was the first formal agreement between the warring parties since Donald Trump took office.
Prices were not affected by the news.
Analysts at Engie EnergyScan stated in a daily note that a ceasefire in Ukraine could lead to the resumption Russian flow.
The benchmark carbon contract in Europe fell by 0.46 euros to 70 euros per metric tonne. (Reporting by Susanna Twidale, Editing by Shilpi Mahumdar)
(source: Reuters)
