EUROPE GAS - Prices range as the market weighs tariff impact

The Dutch and British gas price rose slightly on Tuesday and are expected move in the same direction as the market evaluates the impact of U.S. energy tariffs amid concerns that slow global growth may impact demand.

LSEG data shows that the benchmark Dutch front-month contract increased by 0.71 euros, or $11.54/mmBtu to 36.28 Euros per megawatt hour.

On Monday, the contract reached 33.65 Euros/MWh, its lowest since September 2024.

The Dutch June contract increased by 0.42 Euros to 36.50 Euros/MWh.

The British day-ahead contracts was up by 1.34 pence to 88.75p/therm.

The global trade tensions escalated Monday, after U.S. president Donald Trump threatened that he would impose an extra 50% duty on U.S. imported products from China if it didn't withdraw the 34% tariffs imposed last week on U.S. goods.

China, meanwhile, refused to submit to the "blackmail" of the United States.

It is difficult to determine the impact of tariffs on the economy, given the current macroeconomic concerns. The lower than expected levels in the last few days should have brought bargain hunters into the market, said Klaas Dozeman of Brainchild Commodity Intelligence.

He added that it was impossible to estimate the demand-side impact.

The market did not appear to be affected by the expectation of warmer temperatures.

A trading source said that the market was expected to remain range bound. "It is all macro right now, nobody is looking at the fundamentals," the source added.

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.

The benchmark contract on the European carbon markets was down by 1.29 euros, at 61.55 euro per metric ton. (Reporting by Marwa Rashed; Editing By Susanna Twidale).

(source: Reuters)