Prices of EUROPE Gas are down due to milder weather.
The wholesale gas prices in the Netherlands and Britain were lower on Thursday morning. This was after a recovery in the previous session.
According to LSEG, the Dutch front-month contract fell by 0.53 euros at 43.19 Euros per Megawatt Hour (MWh) as of 0947 GMT. The May contract also dropped by 0.49 Euros to 43.18 Euros/MWh.
The day-ahead contract in Britain was 2.50 pence more expensive at 104.00 cents per therm.
LSEG data shows that the demand for heating in northwest Europe will fall by 604 gigawatt-hours per day (GWh/d), to 2535 GWh, on the day ahead.
The supply of LNG and natural gas from Norway remains robust.
Analysts at Engie EnergyScan stated that "prices are still in the zone which indicates the market hasn't yet chosen a direction. Still awaiting the result of the talks about the Ukrainian conflict."
On Wednesday, U.S. president Donald Trump and Ukrainian president Volodymyr Zelenskiy agreed to work together in order to end Russia's conflict with Ukraine.
Zelenskiy was informed by Trump about his Tuesday phone call with Vladimir Putin. In that conversation, the Russian president refused to accept a full 30-day truce sought by Trump, which Ukraine had said it would accept. However, he agreed to pause all attacks on energy infrastructure.
The market's expectations of a rapid resolution in line with the desire of President Trump will need to be revised. "The scenario of a lasting peace achieved by small steps over time seems more plausible," said Jorge Leon of Rystad Energy, the head of geopolitical analyses.
Leon said that the likelihood of a sudden increase in Russian oil supplies on the market had decreased as a result.
The benchmark contract on the European carbon markets was 0.05 euros lower at 73.41 euro per metric ton. (Reporting and editing by Nina Chestney; Marwa Rashad)
(source: Reuters)
