Dutch and British gas prices edged higher on Thursday morning as slightly cooler temperatures lifted demand and as the market waits for news from Ukraine-Russia peace talks.
The benchmark Dutch front-month contract (TRNLTTFMc1) was up 0.46 euro to 35.21 euros per megawatt hour (MWh) or $11.55/mmBtu, by 0818 GMT, LSEG data showed.
The Dutch July contract (TRNLTTFMc2) was up 0.43 euro at 35.33 euros/MWh.
The British day-ahead contract (TRGBNBBD1) was up 0.03 pence at 79.03p/therm.
“On the weather side, a strong pattern drives colder-than-normal temps in continental Europe through mid-next week, with a warming trend likely mid-week before potential cooling resumes,” analysts at Engie EnergyScan said in a daily market note.
The slight drop in temperature has led to an increase in gas demand in north-west Europe, up 107 gigawatt hours/day in the previous session, LSEG data showed.
Global events, however, weighed over the market.
“Geopolitical developments, such as the ongoing Ukraine-Russia peace talks in Istanbul, may introduce some volatility. However, the likelihood of a breakthrough appears limited, particularly with President Putin and Donald Trump not attending,” said LSEG analyst Wayne Bryan.
Putin on Sunday proposed direct negotiations with Ukraine in Istanbul, Turkey but the Kremlin late on Wednesday named a delegation that did not include the president.
In the European carbon market, the benchmark contract (CFI2Zc1) was down 0.51 euro at 71.82 euros a metric ton.
Source: Reuters