Europe Gas Prices Steady After Monday Sell-Off
Benchmark Dutch and British wholesale gas prices were largely stable on Tuesday morning after a heavy sell-off the previous day, as the market watches for any signs of diplomatic efforts that could help reopen the Strait of Hormuz.
Dutch, British gas contracts fell around 8% on Monday Market hopes for renewed Middle East diplomacy push Prices also depend on weather, Asian demand OSLO, Sept 22 (Reuters) — Benchmark Dutch and British wholesale gas prices were largely stable on Tuesday morning after a heavy selloff the previous day, as the market watches for any signs of diplomatic efforts at a UN meeting this week that could help reopen the Strait of Hormuz. 35 per megawatt hour (MWh) by 0809 GMT, ICE data showed. 60 pence per therm.
Both contracts fell around 8% on Monday to their lowest intraday levels since September 7, with losses likely overdone and correcting on Tuesday, analysts and traders said. "Focus is on the UN meetings in New York and the possibility of US-Iran negotiations," said Arne Lohmann Rasmussen, chief analyst at Global Risk Management, in a note. However, there is no confirmation of direct US-Iran talks and any agreement would likely require significant concessions from the US that would be difficult to accept, especially with elections looming, he added.
"Weather and Asian demand are the key for the coming month," a trader said, adding the level at which demand destruction sets in will likely set prices. Demand for liquefied natural gas (LNG) from end-users in Northeast Asia remains weak, analysts at In Europe, the weather will be drier and warmer than normal the next two weeks, LSEG meteorologist Georg Mueller said. 76 percentage points lower year-on-year, according to data from Gas Infrastructure Europe. 3 mcm/day on Monday, with Wednesday to see further drops still, data from infrastructure operator Gassco showed.
20 per metric ton. net)