British and Dutch gas prices fell on Monday morning as news of possible talks between Russian and U.S. leaders raised hopes tension on the border with Ukraine could de-escalate and strong winds curbed gas demand from power stations.

The British gas contract for immediate delivery fell 6.25 pence to 167 pence per therm by 0931 GMT, while the contract for day-ahead delivery fell by 8 pence to 167 pence/therm.

The Dutch contract at the TTF hub for March TRNLTTFMc1 was down 1.65 euros at 70.50 euros per megawatt hour (MWh).

“Prices are weakening this morning, under the pressure from hopes of an easing on the Ukrainian crisis,” analysts at Engie EnergyScan said in a daily note

French President Emmanuel Macron said Russian President Vladimir Putin and his U.S. counterpart Joe Biden had agreed in principle to a summit over the Ukraine crisis which has seen tens of thousands of Russian troops assembling around Ukraine’s borders sparking fears of a possible invasion.

The Kremlin said on Monday a call or meeting could be set up at any time but there were no concrete plans yet for a summit.

In Britain Strong winds from storms which have battered the country over the past few days also led to high output from wind farms, cutting demand for gas from gas-fired power plants.

“The stormy weather in the UK which curbed gas for power demand last week is forecast to continue this week,” analysts at Refinitiv said in a daily research note.

Wind farms were providing around 34% of Britain’s electricity on Monday morning with gas plants providing just 23%.

In the European Union carbon market, the benchmark December 2022 contract CFI2Zc1 fell 1.29 euros to 88.18 euros a tonne.
Source: Reuters (Reporting By Susanna Twidale; Editing by Kirsten Donovan)