Dutch and British wholesale gas prices traded in a narrow range on Wednesday morning on warm weather, soft demand and stable supply while market players continued to monitor Russia-Ukraine peace talks.
The benchmark Dutch front-month contract (TRNLTTFMc1) rose 0.10 euro to 31.90 euros per megawatt hour (MWh), or $10.63/mmBtu, by 0835 GMT, according to LSEG data.
The British day-ahead (TRGBNBPD1) contract was up 0.23 pence at 76.23 pence per therm, while the front month contract (TRGBNBPD1) was up 0.25 pence at 76.50 p/therm.
LSEG analyst Yuriy Onyshkiv said robust liquefied natural gas (LNG) sendouts and stable Norwegian flows as well as a warm wave this week in Northwest Europe, shall keep the balance loose stimulating strong injections.
Temperatures across north-west Europe are forecast above-average until next week before dropping from May 5-9.
“With no change in the underlying fundamentals, eyes will remain focussed on what developments are made in the two main topics driven by President Trump over the coming days – namely any resolution to the peace deal he is brokering and of course his global tariffs charge,” consultancy Auxilione said in a morning note.
“Both of these topics have the potential to further unsettle the energy markets,” Auxilione said.
The Kremlin said on Tuesday that Ukraine had not responded to many offers by Russia President Vladimir Putin to start direct peace negotiations, and that it was unclear whether it would join a three-day ceasefire he has announced for next month.
Putin on Monday declared a three-day ceasefire in the war in Ukraine from May 8-10, when Russia plans lavish celebrations to mark the 80th anniversary of victory over Nazi Germany in World War Two.
Ukraine, in response, questioned why Moscow would not agree to its call for a ceasefire lasting at least 30 days and starting immediately.
EU gas storage facilities are now 38.95% full, according to Gas Infrastructure Europe.
In the European carbon market, the benchmark contract (CFI2Zc1) was up by 1.20 euro to 66.05 euros per metric ton.
Source: Reuters