Prices of EUROPE GAS close lower due to easing supply concerns
On Monday, the benchmark Dutch wholesale gas prices for the first month fell as a result of easing fears about supply. This was at a time when European leaders were meeting to discuss strategies on any possible peace agreement between Ukraine & Russia.
The benchmark front-month contract for the Dutch TTF hub was almost 6% lower, closing at 47.72 Euros per megawatt-hour (MWh), compared to the level it closed on January 20. Meanwhile, the April contract was 5.6% lower, closing at 48.05 Euros/MWh.
Other contracts also fell. The British month-ahead contract closed at 118.04 cents per therm, 4.80 pence less.
The traders say that the prospect of a possible peace agreement between Russia and Ukraine helped ease market concerns regarding supply.
On Monday, European leaders met to discuss a united strategy for any peace agreement in Ukraine. Meanwhile, Russian and U.S. officials were preparing to hold their own meetings to try to resolve the conflict.
The U.S. Energy Sec. Chris Wright called the pledge to achieve zero net carbon emissions by the year 2050 "sinister" on Monday and stated that his top priority was to have the government "get out the way" for the production of coal, oil and gas.
The administration of Donald Trump announced on Friday that it had granted a licence to Commonwealth LNG for the export of liquefied gas in Louisiana. This is the first time the export of this resource has been approved since former president Joe Biden stopped them at the beginning of last year.
In 2023, the United States surpassed Qatar and Australia as the largest LNG suppliers in the world. In 2023 and 2024, it dominated the supply to Europe.
(source: Reuters)
