Prices for EUROPE GAS continue to fall as the warm weather continues curb demand

The Dutch and British gas price continued to fall on Thursday as the warmer weather continues reducing demand. Meanwhile, the market is watching the impact of Trump’s "Liberation Day tariff plan".

LSEG data shows that the Dutch front-month contract fell 0.89 euros to 40.60 Euro per Megawatt Hour (MWh), or $12.80/mmBtu at 0827 GMT.

The Dutch day-ahead contracts was down by 1.05 euros at 39.95 Euro/MWh.

The British day-ahead contracts was down 1,70 pence to 98.80 per therm.

LSEG data shows that the gas demand for heating in Northwest Europe will be lower than expected, despite an increase in temperatures.

The move by President Donald Trump to slap 10% tariffs on the majority of goods imported into the United States as well as higher tariffs on dozens rivals and allies has intensified a trade war around world that could stoke inflation or stall growth.

The global demand outlook has become unstable, with Trump's tariffs likely to result in price increases that will dampen the demand around the globe," said LSEG Analyst Wayne Bryan.

Analysts at Engie’s EnergyScan stated in a morning report that it was difficult to imagine the majority of U.S. trading partners would raise tariffs on the LNG imported from this country. However, some could, including China, which has other options for energy.

"Europe would find it much more difficult." In 2024, the United States will supply 46% of European LNG. EnergyScan analysts stated that a trade partner with a market share of this high cannot be viewed as a marginal provider.

The market is still in a zone where it does not seem to have a clear direction. This is especially true with the lack of progress in peace talks led by the United States in order to end war in Ukraine.

The benchmark carbon contract in Europe was down 1.54 euros at 67.02 euro per metric ton. (Reporting By Marwa Rashad; Editing by Sonia Cheema)

(source: Reuters)