British and Dutch gas prices rose on Thursday following a series of downward sessions in recent weeks, but a comfortable supply position and stable demand overshadow geopolitical concerns over shipping through the Red Sea.

The benchmark front-month contract at the Dutch TTF hub was up 0.69 euros at 34.60 euros per megawatt hour (MWh) by 0959 GMT, LSEG data showed.

The February contract rose 1.32 euros to 35.15 euros per megawatt hour (MWh).

The British day-ahead gas contract rose by 2.25 pence to 73.50 pence per therm, while the Dutch equivalent was up 1.08 euros at 33.93 euros/MWh.

“It’s almost as if we’re back to normal, with sessions moving in either direction but only by small movements … a pound/euro or two per MWh,” consultancy Auxilione said in a morning note.

“This will be a huge welcome to market as we start to distance ourselves from the extreme volatility of 2021 and 2022 and quickly head into 2024.”

LSEG analyst Marina Tsygankova said market fundamentals drivers were roughly unchanged with the supply and demand picture stable, but prices might continue to be driven by sentiment around the Red Sea situation as the market closely watches the movement of LNG shipments through Suez.

Washington launched a task force on Tuesday to safeguard Red Sea commerce as attacks by Yemeni militants forced major shipping companies to reroute, stoking fears of sustained disruptions to global trade.

In the European carbon market, the benchmark contract gained 1.32 euros to 76.85 euros a metric ton.
Source: Reuters (Reporting by Marwa Rashad; Editing by Clarence Fernandez)