Dutch and British wholesale gas prices edged higher early on Thursday as concerns that a possible escalation of the Israel-Iran conflict could disrupt supply weighed on the market.

The benchmark Dutch front-month contract at the TTF hub was up 0.05 euro to 39.90 euros per megawatt hour (MWh) or $13.41/mmBtu, by 0821 GMT, LSEG data showed.

The Dutch August contract was up 0.33 euro at 40.40 euros/MWh.

The British front-month contract was up 2.88 pence at 94.28 p/therm.

“We do … see a bullish opening Thursday. This could be attributed to reports that (U.S. President) Donald Trump is leaning towards joining the war, which would of course be another escalation to the conflict,” analysts at energy trading company Mind Energy said in a market report on Thursday.

Supply from the region has remained steady so far but there are concerns that passage for vessels through the Strait of Hormuz could be disrupted.

“While no new major developments emerged overnight, concerns persist around LNG shipping disruptions in the Gulf,” LSEG analyst Dzmitry Dauhalevich said in a daily research note. “QatarEnergy’s precautionary measures continue to fuel sensitivity to supply risks, especially with the broader Middle East situation still tense.”

QatarEnergy has instructed tankers to remain outside the Strait of Hormuz and to enter the Gulf only the day before loading, two sources familiar with the matter told Reuters on Tuesday.

In the European carbon market, the benchmark contract (CFI2Zc1), was down 0.04 euro at 74.57 euros a metric ton.
Source: Reuters