Dutch and British gas prices dip on US-Iran diplomacy hopes
Dutch and British gas prices fell Monday as UN talks in New York raised hopes for diplomatic progress on the Iran war, alongside a forecast for unseasonably mild weather next week.
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Trump says he may meet Iran's president at UN assembly Temperatures expected to rise above seasonal norms next week EU gas stores approaching 70% full By Susanna Twidale LONDON, Sept 21 (Reuters) — Dutch and British gas prices fell on Monday morning as this week's United Nations meeting in New York raised hopes for diplomatic progress on the Iran war, and with temperatures expected to be unseasonally mild next week. The benchmark Dutch front-month contract at the TTF hub was down €3.034 at €76.475 per megawatt hour, or around $25.75/mmBtu, by 0814 GMT, ICE data showed. The British front-month contract was down 7.65 pence at 190.51 pence per therm. "We open with price falls Monday morning in the wake of the growing hopes that the peace talks in the Middle East could resume soon," analysts at Mind Energy said in a daily market report. The US and Iran continue to trade threats, but US President Donald Trump has indicated he may be open to meeting Iran’s president at this week’s UN assembly, raising the possibility of diplomacy aimed at ending the conflict. The Iran conflict has curbed shipping transit through the Strait of Hormuz, through which roughly a fifth of the world's LNG typically passes, pressuring global gas prices. A change in weather forecasts is also expected to curb gas demand next week. “Next week appears to be a late summer heat spell, with temperatures rising 6 degrees Celsius above normal (for Northwest Europe)," LSEG analyst Ulrich Weber said in a market report. Europe’s gas stores are 69.62% full, latest data from Gas Infrastructure Europe showed. "The rebound in Norwegian supply (266 million cubic metres/day on Friday, compared to 255 mcm/d on Thursday) and the drop in gas demand led to an increase in European net gas storage injections," analysts at Engie EnergyScan said. In the European carbon market, the benchmark contract was up €0.66 at €87.55 a metric ton. (Reporting by Susanna Twidale; Editing by Jan Harvey) ((susanna.twidale@thomsonreuters.com)