Dutch and British wholesale gas prices edged lower on Monday morning as temperatures remained mild and as U.S. and Russian officials began talks in Saudi Arabia to discuss a possible ceasefire in Ukraine.
The Dutch front-month contract (TRNLTTFMc1) was down by 1.13 euro to 41.47 euros per megawatt hour (MWh), or $13.22/mmBtu, by 0907 GMT, LSEG data showed.
The Dutch May contract (TRNLTTFMc2) was down 0.85 euro at 41.60 euros/MWh.
The British front-month contract (TRGBNBPMc1) was down 1.65 pence at 101.65p/therm.
“The change to fundamental drivers is slightly bearish, and no major geopolitical developments have occurred during the weekend. Now geopolitically, focus rests on Russia-U.S. talks kicking off in Saudi Arabia,” LSEG analyst Ulrich Weber said in a daily research note.
LSEG said average temperatures in Britain are mostly above normal over the coming two weeks by up to 3 degrees Celsius.
In Europe LSEG said its temperature modelling came in up to 1 degree higher on Monday morning compared to last Friday.
“Meanwhile, next week presents itself warmer again,” Weber said.
In Britain, the return of two nuclear plants from maintenance over the weekend also added to bearish pressure on prices
U.S. and Russian officials began talks in Saudi Arabia on Monday aimed at making progress towards a broad ceasefire in Ukraine.
“Markets will be watching for any progress here and what impacts there may be for energy,” analysts at Auxilione said in a daily research note.
In the European carbon market, the benchmark contract (CFI2Zc1) edged down by 0.06 euro to 71.39 euros a metric ton.
Source: Reuters