EUROPE GAS - Prices rise due to colder weather and wind; attention on Trump
Dutch and British wholesale gas prices increased on Thursday morning due to colder weather and low winds, but uncertainty remains over the impact of the U.S. Donald Trump presidency on the global market.
LSEG data shows that the benchmark front-month contract for the Dutch TTF Hub increased by 0.28 euros to 41.00 Euro per megawatt hour (12.92/mmbtu) or 12.92 euros per megawatt (MWh) at 0941 GMT.
The British December contract increased by 1.98 pence, to 103.5 pence/therm. Meanwhile, the day-ahead contract rose 0.70 pence and was now 103.1 pence/therm.
The temperature forecasts have been lowered to just below normal seasonal levels. Auxilione, a consultancy, said in its daily note that gas storage has now entered withdrawal mode. It had been just above 95%.
Prices will also be supported by low wind speeds due to the higher demand for gas in power generation.
As traders assessed the impact of Donald Trump's foreign policy on the global gas market, the market fell on Wednesday.
Klaas Dizeman, a market analyst with Brainchild Commodity Intelligence, stated that Trump has promised to end the pause in new LNG exports put in place by Biden's administration. This would improve chances of new LNG supply after 2027.
People will also be interested in his policy towards China and Russia.
The likely impact of Trump's return as U.S. president is hard to estimate. In a daily report, analysts from Engie's EnergyScan stated that the market appears to be more willing to wait and see what happens.
Gas supplies from Russia via Ukraine to Europe remained stable.
Gazprom, the Russian gas producer, said that it will send the same amount of gas via Ukraine to Europe on Thursday as it did on Wednesday.
The benchmark contract on the European carbon markets rose by 1.58 euros to 65.34 euro per metric ton.
(source: Reuters)
