Dutch and British wholesale gas prices rose on Tuesday morning on concerns over supply prompted by violence in the Middle East and on colder weather forecasts.

The Dutch November contract TRNLTTFMc1 was up by 3.00 euros to 46.00 euros per megawatt hour (MWh) by 0852 GMT, while the December contract TRNLTTFMc2 was 1.35 euros higher at 48.15 euros/MWh.

The British day-ahead contract TRGBNBPWKD rose by 8.00 pence, hitting a 9-day intraday high at 103.00 pence per therm. The November contract TRGBNBPMc1 was up 6.30 pence at 113.00 p/therm.

“Conflict in Gaza, to which some gas and oil infrastructure is near, has injected some new fear into the markets. This is coupled with the ongoing situation in Australia and some colder weather expected in the coming days which will see temperatures fall below seasonal normal,” consultancy Auxilione said in a note.

Traders noted Chevron CVX.N had been instructed by Israel’s energy ministry to shut down the Tamar natural gas field off the country’s northern coast.

The field produced 4.91 billion cubic metres (bcm) in the first half of 2023. In 2022 it accounted for 10.2 bcm of Israel’s total gas production of 21.9 bcm. Israel exported 9.2 bcm of gas to Jordan and Egypt, according to data from Engie’s EnergyScan.

Meanwhile in Australia, Chevron and unions representing workers at its two liquefied natural gas (LNG) facilities are scheduled to meet for talks on Wednesday after the company asked the industrial arbitrator to help reach a deal as workers threaten to restart strikes.

Temperatures in Britain and north-west Europe are expected to drop later this week which could raise demand for heating, while wind speeds are expected to be variable, LSEG data showed.

In the European carbon market, the benchmark contract CFI2Zc1 inched up 0.91 euro to 82.66 euros a tonne.
Source: Reuters (Reporting by Marwa Rashad; editing by Jason Neely)