Prices for EUROPE GAS remain stable despite cooler temperatures and Middle East anxieties
The Dutch and British wholesale prices of gas rose slightly on Thursday morning, as demand increased due to the colder weather and reduced wind. However, the range remained tight as the market continued to monitor the developments in the Middle East.
LSEG data show that the benchmark front-month contract for the Dutch TTF Hub was up 0.21 euro at 38.76 Euros per Megawatt Hour (MWh), which is $12.42 per mmBtu at 0839 GMT.
The contract for the day-ahead was up by 0.82 euros at 38.72 euro/MWh.
The British day-ahead rate was 95.50 pence pence per therm, 1.50 pence more expensive.
Analysts at Northern Gas and Power stated in a morning press briefing that the prospect of temperatures below seasonal levels and wind energy generation in Britain up until early next week supported gas contracts.
According to LSEG, lower temperatures in Germany and France increased heating demand for the next day by more than 450 gigawatt-hours (GWh). In Britain, demand rose by 39 million cubic meters (mcm).
Elexon data shows that the peak wind generation in Britain will drop from 15,2 gigawatts on Thursday to 9,7 GW on Saturday.
Analysts at Energi Danmark stated in a morning briefing that supply in Europe is "abundant now and here", highlighting an increased flow of Norwegian gas following some outages, and the ongoing exports via Ukraine from Russia.
The market is waiting for the moment when Israel will attack Iran.
Middle East is on edge as it awaits Israel's response after a missile strike by Iran last week, which Tehran launched in retaliation to Israel's military escalated in Lebanon.
The White House reported that U.S. president Joe Biden spoke with Israeli Prime Minister Benjamin Netanyahu in a "direct, very productive call" on Wednesday. Israeli Defence Minister Yoav Galant also promised a strike by Israel against Iran to be "lethal and precise, and surprise".
The benchmark EU carbon permit contract has risen from 63.83 euro per metric tonne to 1.82 euros on the European carbon markets.
(source: Reuters)
