EUROPE GAS — Prices ease after hitting near 4 — year highs
Dutch, British contracts hit highest since December 2022 Energy site, shipping attacks in Middle East lend support Milder weather forecast limits gas demand, allows for gas storage injections OSLO, Oct 14 (Reuters) — Benchmark Dutch and British wholesale gas prices eased on Wednesday as a milder weather forecast is moderating a rise in heating demand, but remain at near four-year highs amid ongoing shipping attacks in the Middle East and low storage levels. The benchmark Dutch front-month contract at the TTF hub fell by €1.74 to €85.48 per megawatt hour (MWh) by 0813 GMT, ICE data showed. The British front-month contract fell by 4.93 pence to 211.90 pence per therm. Both contracts hit their highest intraday levels since December 23, 2022 over the past two days, of €87.44/MWh and 217 p/therm respectively, supported by intensified strikes in the Middle East and low European gas storage levels ahead of the winter. The market was seeing an initial correction on Wednesday, analysts at Mind Energy said in a morning report. The latest weather forecast indicated milder weather, implying fewer heating degree days (HDD) through the month, which may help with storage injection levels, a trade
Dutch, British contracts hit highest since December 2022 Energy site, shipping attacks in Middle East lend support Milder weather forecast limits gas demand, allows for gas storage injections OSLO, Oct 14 (Reuters) — Benchmark Dutch and British wholesale gas prices eased on Wednesday as a milder weather forecast is moderating a rise in heating demand, but remain at near four-year highs amid ongoing shipping attacks in the Middle East and low storage levels. 48 per megawatt hour (MWh) by 0813 GMT, ICE data showed. 90 pence per therm.
44/MWh and 217 p/therm respectively, supported by intensified strikes in the Middle East and low European gas storage levels ahead of the winter. The market was seeing an initial correction on Wednesday, analysts at Mind Energy said in a morning report. The latest weather forecast indicated milder weather, implying fewer heating degree days (HDD) through the month, which may help with storage injection levels, a trader said. Still, tensions in the Middle East which are hampering liquefied natural gas (LNG) exports from the region will continue to support prices, he said.
Iran is deploying new tactics to target ships sailing through the Strait of Hormuz as it seeks to keep oil prices high and influence the US midterm elections, two senior Iranian officials told Reuters. Such a move also affects LNG shipments and natural gas prices. Meanwhile, several tankers carrying Atlantic-sourced LNG have diverted towards Europe, away from Asia, in recent days, as expectations of stronger winter demand amid seasonally low gas inventories boost the region's pull on global supplies. 94% full, Gas Infrastructure Europe data showed, well below historical levels for this time of the year.
Another factor impacting the direction of gas prices is the broader market positioning, especially by speculative participants. Updated commitments of traders (COT) data for the TTF reflecting changes last week showed a rise in net-long positions, indicating a belief in rising prices. 75 per metric ton. net)