Prices of EUROPE GAS rise amid economic turmoil
Dutch and British gas rates rose Monday morning, in line with the equities market, after some tariff exemptions were granted for Chinese products supplying tech companies. Milder, windier conditions should also allow for increased gas storage filling.
LSEG data shows that the benchmark Dutch front-month contract rose by 0.40 euros to 34.00 euros per Megawatt Hour (MWh) or $11.43/mmBtu at 0826 GMT.
The Dutch June contract increased by 0.48 euros to 34.28 Euro/MWh.
The British day-ahead contracts was up 1.50p at 84.00p/therm.
Further exemptions from tariffs are needed to counteract the recessionary fears that Trump's trade policy has caused. Ulrich Weber, LSEG's analyst, said that the sale of laptops and phones over the weekend might have a lessening effect on the global economy.
On Friday, the White House announced that there would be no reciprocal tariffs, but by Sunday, U.S. president Donald Trump had indicated that new tariffs could be announced on smartphones, computers, and other electronic devices.
Weber said that the windy weather will limit the demand for electricity and also reduce gas storage in Europe.
Gas Infrastructure Europe (GIE), according to its data, reported that Europe's storage sites for gas were almost two thirds empty at the end of winter and only 35.1% filled.
The European Union backed new rules on Friday that allow countries to deviate up to 10 percentage points from EU requirements to fill storage tanks to 90% capacity before winter if the market conditions are not favorable.
The benchmark carbon contract in Europe was down by 1.07 euros, at 65.89 euro per metric ton. Reporting by Nora Buli, Oslo; Editing Shailesh Kuber
(source: Reuters)
