Dutch and British wholesale gas prices rose on Monday, lifted by concern over the political situation in Russia and confirmation that the Netherlands’ Groningen gas field will close this year.

The Dutch TTF benchmark front-month contract TRNLTTFMc1 was up 2.35 euros at 35.10 euros per megawatt hour (MWh) by 0833 GMT, Refinitiv Eikon data showed.

The Dutch day-ahead contract TRNLTTFD1 rose by 2.50 euros to 35.00 euros/MWh.

The British equivalent day-ahead TRGBNBPD1 contract was up by 8.2 pence at 88.50 p/therm.

“(Prices) are rebounding strongly this morning, probably supported by the news about Groningen, the events in Russia and technical buying,” analysts at Engie EnergyScan said in a market note on Monday.

The Dutch government on Friday afternoon confirmed its long-stated position that gas production at the Netherlands’ Groningen field would end by Oct. 1. An alternative option had been for production to be extended for a year.

Production facilities will be closed permanently in 2024, the government said, but there will be an option to extract limited amounts of gas in extreme circumstances in the coming year.

Concern about political stability in Russia have increased following an aborted mutiny by Wagner Group mercenaries over the weekend, adding to bullish sentiment in the market.

Traders were taking a cautious approach and there has been some short covering, one trader said.

Gas exports from Russia to Europe remained stable on Monday. Russia’s Gazprom said that it would send 41.4 million cubic metres of gas to Europe via Ukraine on Monday, a similar level to recent days.

In the European carbon market, the benchmark contract CFI2Zc1 was up 0.24 euros at at 88.12 euros per metric ton.
Source: Reuters (Reporting by Susanna Twidale Editing by David Goodman )