EUROPE GAS - Prices rise on geopolitical concerns and colder weather
Dutch and British wholesale prices of gas rose on Monday, due to the uncertainty surrounding gas flow, the colder weather forecast at the end the month, and minor delays in Norwegian maintenance.
LSEG data show that the benchmark front-month contract for the Dutch TTF Hub was up by 1.03 euros to 35.47 euros per Megawatt Hour (MWH), which is $11.51 mmBtu at 0949 GMT.
The day-ahead contract in the British market rose by 1.25 cents to 84.50 p/therm while the front-month gained 2.46 cents to 85.26 pence per therm.
In a recent report, Northern Gas and Power analysts said that fears of an escalation in the Middle Eastern conflict affecting gas supplies and attacks in multiple regions was causing uncertainty on the gas and electricity markets.
They added that "further support for the month-ahead contract comes as attacks on the Russia-Ukraine frontier close to energy infrastructure continue, although the energy infrastructure remains undamaged."
Daniel Hynes is a senior commodities strategist with ANZ. He said that traders are also on edge about supplies via Ukraine. A deal to transport Russian Gas will expire by the end of this year.
A report saying that Ukraine had made a temporary deal to transport Azerbaijani natural gas to Europe briefly sent the prices down on Thursday, but they have since risen as officials from both countries deny such an agreement was struck.
Gazprom, Russia's gas company, has confirmed that it will send the same 42 million cubic meters (mcm), or 42 million cubic feet, of gas via Ukraine to Europe on Monday as it did on Sunday.
Data from Gassco revealed that Norwegian gas supplies to Europe and Britain have been increased from Friday's 245 mcm/day. However, some maintenance at the Skarv- and Sleipner-fields has also been extended.
Analysts said that the forecast for colder temperatures between now and the end of this month will also support prices, as it will increase demand.
Gas Infrastructure Europe (GIE), according to its data, showed that the European gas storage capacity was at last 93.63% full.
The benchmark contract on the European carbon markets was 1,27 euros more expensive at 64,66 euros per metric tonne.
(source: Reuters)
