The price of gas in Europe is falling amid mild temperatures and ceasefire talks with Ukraine

Dutch and British wholesale prices of gas fell on Monday morning, as temperatures remained mild. Meanwhile, U.S. officials and Russian officials were in Saudi Arabia for talks to discuss possible ceasefires in Ukraine.

LSEG data shows that the Dutch front-month contract fell by 1.13 euros to 41.47 Euro per Megawatt Hour (MWh) or $13.22/mmBtu by 0907 GMT.

The Dutch May contract is down by 0.85 euros at 41.60 Euro/MWh.

The British front-month contracts was down 1,65 pence to 101.65p/therm.

The weekend saw no significant geopolitical events. Geopolitically, the focus is on Russia-U.S. negotiations starting in Saudi Arabia," LSEG's Ulrich Weber wrote in a research note.

LSEG reported that temperatures in Britain will be up to 3 degrees Celsius above normal for the next two weeks.

In Europe, LSEG's temperature modeling showed that temperatures were up to one degree higher than last Friday on Monday morning.

Weber stated that "next week will be warmer than this one."

The return to service of two nuclear reactors in Britain over the weekend has also put downward pressure on prices

U.S. officials and Russian officials started talks in Saudi Arabia Monday to make progress toward a ceasefire that is broad in Ukraine.

Analysts at Auxilione stated in a daily note that "Markets are watching to see if there is any progress and what the potential impacts may be on energy."

The benchmark carbon contract in Europe fell by 0.06 euros to 71.39 euro per metric ton. (Reporting by Susanna Twidale, editing by Nina Chestney).

(source: Reuters)