Dutch and British wholesale gas prices rose on Thursday morning, as colder weather drives up gas demand for heating, while the market closely monitors developments on a potential ceasefire deal between Ukraine and Russia.
The benchmark front-month contract at the Dutch TTF hub (TRNLTTFMc1) was up 0.93 euro at 42.78 euros per megawatt hour (MWh), or $13.63/mmBtu by 0916 GMT, LSEG data showed.
The British day-ahead contract (TRGBNBPD1) was up 2.00 pence at 107.00 pence per therm.
“The fall in temperatures below normal continued to drive up gas demand (for heating) in most European countries,” analysts at Engie’s Energy Scan said in a morning note.
The latest temperature forecast has adjusted slightly towards colder temperatures for working days next week, March 18-21. Demand for heating is expected up by 183 gigawatt hour per day (GWh/d) on the day ahead and working days next week is up by 189 GWh/d, said LSEG analyst Saku Jussila.
The Kremlin said on Wednesday it would review details from Washington about a proposal for a 30-day ceasefire in Ukraine before responding, while U.S. Secretary of State Marco Rubio hoped a deal would be struck within days.
Two people familiar with the matter said Russia has presented Washington with a list of demands for a deal to end the Ukraine war and reset relations with the United States.
North Asia LNG prices rose on signs of stronger demand. Stockpiles of LNG held by Japanese power generators dropped by 9.6% last week, its lowest level in three months, prompting Japanese buyers to seek additional LNG cargoes, said Daniel Hynes, senior commodity strategist at ANZ.
Asian demand is the biggest risk factor for Europe, if it has to compete for cargoes to fill in its rapidly depleting storage.
EU gas storage sites were last seen 26.23% full, data from Gas Infrastructure Europe showed, with the EU maintaining a 90% refilling target by Nov. 1.
In the European carbon market (CFI2Zc1), the benchmark contract inched down by 0.06 euro at 69.56 euros per metric ton.
Source: Reuters