EUROPE GAS - Prices range amid geopolitical risks and strong inventories
The Dutch and British wholesale prices of gas were not much changed on Wednesday. They traded in a narrow range amid high storage inventories, mild weather and geopolitical tensions.
LSEG data revealed that the benchmark front-month contract for the Dutch TTF hub remained flat at 38.60 Euros per Megawatt Hour (MWh), which is $12.60 per mmBtu at 09:00 GMT.
The contract for December increased by 0.15 euro to 39.40 Euro/MWh.
The British front-month contract fell 0.83 pence to 96.35 pence per therm.
LSEG analyst Wayne Bryan stated that geopolitical risks will continue to cause volatility on the market despite the fundamentals pointing firmly down in the short-term.
In the coming weeks, LNG will continue to flow towards Europe and the UK. The supply is strong as continued injections push gas storage to its utmost capacity. Auxilione, a consultancy, said that temperatures are expected to remain close to normal seasonal levels in the weeks ahead.
Auxilione said, "Without a key driver to drive markets in either way, they remain idly anxious and continue to watch global geopolitical development which remains a major risk."
Middle East is on edge as it awaits Israel's reaction to the missile attack by Iran last week, which Tehran launched in retaliation of Israel's military expansion in Lebanon. The Iranian attack did not kill anyone in Israel, and Washington described it as ineffective.
A person familiar with this matter said that U.S. president Joe Biden will speak with Israeli prime minister Benjamin Netanyahu on Wednesday. The talks are expected to include a discussion about any plans to attack Iran.
The benchmark EU carbon permit contract has risen from 61.92 euro per metric tonne to 1.59 euros on the European carbon markets.
(source: Reuters)
