Prices of gas in Europe drop ahead of Trump-Putin call
Dutch and British wholesale prices for gas eased Tuesday morning, as the market awaited news of a possible peace agreement between Russia and Ukraine. However, low storage levels are still a concern while weather forecasts remain mixed.
LSEG data shows that the Dutch front-month contract has dropped by 0.55 euros to 40.65 Euro per megawatt hour at 0917 GMT.
The Dutch May contract fell by 0.68 euros to 40.57 euros/MWh while the day-ahead contracts eased 0.20 euros to 40.80 euro/MWh.
The day-ahead contract in Britain was down by 1.01 pence, at 101.75 cents per therm.
Analysts at Energi Danmark say that all eyes will be focused on the outcome the phone call between U.S. president Donald Trump and Russian president Vladimir Putin, scheduled for 1300-1500 GMT.
They added, "Until then the market is in a state of uncertainty."
Analysts at ING wrote in a report that traders holding speculative positions on the gas market are worried about the possibility of a peace agreement between Russia and Ukraine allowing the resumption in some cases of Russian pipeline gas to Europe.
LSEG analyst Yuriy Onieshkiv said that fresh tensions in Middle East with the new Israeli airstrikes on Gaza could lead to a bullish sentiment.
In its daily market report, Auxilione stated that "later this week warmer temperatures are forecast but the long-term outlook still predicts below normal seasonal levels which could continue to put pressure on gas storages."
Gas Infrastructure Europe data showed that EU gas storage facilities were only 34.84 percent full last time, compared to nearly 60 percent at the same point last year.
The benchmark carbon contract in Europe fell by 0.12 euros to 69.99 euro per metric ton. Nora Buli, reporting from Oslo; Nina Chestney, editing)
(source: Reuters)
