EUROPE GAS-Prices remain volatile amid tariff, gas storage target uncertainty
The Dutch and British gas price are not clear on Friday, but they remain close to recent multi-month-lows. This is because the market continues grappling with the effects of the U.S. trade war induced by tariffs on the global economic situation and the EU countries meeting to discuss filling gas storage targets.
LSEG data shows that the benchmark Dutch front-month contract fell by 0.02 euros to 33.338 Euro per megawatt hour or $11.13/mmBtu at 0815 GMT.
The Dutch June contract increased by 0.08 euros to 33.84 Euro/MWh.
The British day-ahead contracts was up 1.15 pennies at 82.50 pence per therm.
Contracts opened slightly firmer, but then reversed course after China increased tariffs on U.S. imports of goods to 125%.
On Friday, the turbulence caused by U.S. president Donald Trump's tariffs did not show any signs of abating. Financial markets were again thrown into turmoil and foreign leaders struggled to figure out how to react to a dismantling world trade order.
A trader stated that gas market participants would likely be cautious ahead of the weekend, given the risk associated with any new moves from the U.S. and China.
Energy Aspects analysts said in a note published weekly that "negotiations and counter-negotiations will only increase the uncertainty. This is due to the market's expectations of the return of Russian gas supplies as well as a possible relaxation of EU Storage Targets."
The EU is meeting this Friday to discuss the rules for gas storage. According to the latest proposal, the target of 90% for the EU will be lowered by 10 percentage points for next winter.
Analysts said that the need to replenish stock also supported the conclusion that Europe's gas storage facilities ended the winter almost two-thirds full.
Analysts at BMI (part of Fitch Group) said that they maintain the belief that TTF prices are likely to have a minimum of around EUR 30/MWh in the months ahead, given the gap in storage needed to be filled in preparation for winter 2025-6.
The benchmark contract on the European carbon markets was down by 0.07 euros at 62.05 euro per metric ton. Nora Buli, reporting from Oslo; David Evans, editing)
(source: Reuters)
