As market monitors Ukraine peace negotiations, the price of gas in Europe is at a two-month low.
Dutch wholesale gas prices dropped significantly on Tuesday amid a large sell-off, as the market waited for the outcome of the U.S.-led negotiations to end the conflict in Ukraine.
The benchmark front-month TTF contract in the Netherlands closed at 43.99 euros, or $13.53 per megawatt hour, down almost 5% at 2.31 euro.
The Dutch day-ahead contracts fell by 3.5 euros or 7.42%, to 43.70 Euro/MWh. This is also the lowest level seen since December 20.
The day-ahead contract in Britain lost 7.16 pence or 6.32% to close at 106.07 cents per therm, the lowest level since December 17
Axios, citing an anonymous source, reported that U.S. Middle East Envoy Steve Witkoff has delayed a trip to Middle East for a few more days because of U.S. diplomacy efforts in Russia and Ukraine.
A trading source said, "The market is long and people fear that prices will fall further in the event of a potential ceasefire."
The benchmark carbon contract in Europe was down by 1.88 euros at 71.78 euro per metric ton. (Reporting by Susanna Twidale in London and Marwa Rashed; Editing and Mrigank Dhaniwala, David Evans).
(source: Reuters)
