Dutch and British wholesale gas prices edged up on Tuesday morning due to slightly higher demand but the supply side remains stable so they continue to trade in a narrow range.
The benchmark Dutch contract for August delivery at the TTF hub edged up by 0.09 euro to 33.20 euros per megawatt hour (MWh) by 0911 GMT, according to LSEG data.
The day-ahead contract (TRNLTTFD1) was 0.37 euro higher at 33.50 euros/MWh.
The British contract for the day ahead (TRGBNBPMc1) was 2.14 pence higher at 81.00 pence per therm.
The market seems to have shrugged off developments on tariffs but uncertainty remains.
U.S. President Donald Trump on Monday ramped up his trade war telling 14 nations, from powerhouse suppliers such as Japan and South Korea to minor trade players, that they now face sharply higher tariffs from a new deadline of August 1.
However, Trump said the deadline was “firm but not 100% firm.”
There is slightly higher total demand forecast for tomorrow due to lower wind generation but supply is steady from Norway and liquefied natural gas.
Gas demand from power plants is expected to be 135 gigawatt hours per day higher on the day-ahead as wind generation drops.
Average temperatures in north-west Europe are forecast to start rising again from tomorrow and wind output is set to fall below normal levels from the weekend and remain there until at least July 21, LSEG data showed.
However, prices are expected to stay within their current trading range.
In the European carbon market, the benchmark contract (CFI2Zc1) edged up by 0.04 euro to 71.24 euros per metric ton.
Source: Reuters