Europe Gas-Prices ease from highest levels since late 2022, storage concerns linger
XLE•Carbon market also moves higher
In the European carbon market, the benchmark contract CFI2Zc1 was up €0.34 at €86.16 per metric ton.
European gas prices ease after sharp weekly gains
Benchmark Dutch and British wholesale gas prices eased on Friday from their highest levels since late 2022, although concerns over Europe's ability to attract sufficient liquefied natural gas (LNG) to refill storage ahead of winter provided support.
The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was €1.53 lower at €80.52 per megawatt hour (MWh) by 0830 GMT, ICE data showed. The British front-month contract NGLNMc1 fell by 4.57 pence to 200.5 pence per therm.
Both have risen to their highest intraday levels since late December 2022 in the past two days and by around 10% this week.
Geopolitical risk and LNG supply concerns support prices
Reciprocal attacks by the U.S. and Iran on shipping in the Middle East rose to their highest since the beginning of the Iran war this week, analysts at LSEG said.
Meanwhile, a Financial Times report suggested foreign ministers in the Middle East will meet with Iran to reach an agreement over shipping via the Strait of Hormuz, where Qatari LNG exports remain curtailed.
Still, analysts at Commerzbank said they have lifted their year-end TTF forecast by 50% to €75/MWh.
"As we now anticipate a gradual de-escalation rather than an official reopening of the Strait of Hormuz in the fourth quarter, the European gas market is likely to focus more closely on gas storage levels and security of supply," they said.
