Prices of Euro GAS are falling due to profit-taking
On Tuesday morning, Dutch and British wholesale prices for gas fell slightly after a rise of around 7% the previous day.
According to LSEG, the benchmark front-month contract for the Dutch TTF Hub was down 0.40 euros at 47.85 Euros per Megawatt Hour (MWh), which is $14.38 /mmbtu by 0923 GMT.
The Dutch March contract is down by 0.98 Euros at 47.62 euro/MWh.
The day-ahead contract in Britain fell by 1,03 pence, to 122 pence/therm.
In a daily report, LSEG analyst Wayne Bryan stated that "our outlook for today" is that prices will give back some gains from yesterday and we could see some profit-taking if no more news-driven speculation relating yesterday's events are made.
Prices increased by around 7% Monday, as the market processed the latest sanctions against Russian oil and natural gas. Also, reports indicated that the Turkstream pipeline was attacked despite the fact it still appeared to be operating.
Analysts at Auxilione, a consultancy, said that any damage to the pipeline caused by the recent termination of the Ukraine Transit Deal would be a concern for European markets.
The market also reacted to the news that ten European Union nations have asked for the 27-nation block to ban imports from Russia of LNG and pipeline gas.
The signatories of the LNG agreement did not include the major LNG importers Germany France, the Netherlands, or Belgium.
The temperatures are expected to rise to normal levels over the next couple of days following the cold snap.
Shiptracking data revealed that LNG vessels expected to load at the two newly sanctioned Russian terminals will deliver their cargoes mainly to Europe, as well as to Asia. However, market impact is expected to be minimal.
The benchmark contract on the European carbon markets was down by 0.54 euros at 76.38 euro per metric ton.
(source: Reuters)
