Europe gas prices edge lower after US midterm elections reduce Iran war escalation fears
UNG•Dutch and British gas prices fell as US midterm election results raised hopes of reduced escalation in the US-Israeli war against Iran. The Dutch benchmark was down 17% from last week’s high above €104/MWh, at €86.72/MWh.
1. Prices extend declines
Dutch and British front-month gas prices edged lower on Thursday, extending losses this week as markets weighed whether Republican losses in US congressional elections could reduce the risk of further escalation in the US-Israeli war against Iran. The Dutch front-month contract fell €1.362 to €86.72/MWh, while the British contract was down 3.39 pence at 215.01 pence per therm.
2. Volatility expected
Analysts said gas prices are likely to remain volatile over the next few days. An LSEG analyst said the market appeared to have priced in significant supply improvements that had yet to materialize. Norwegian exports were expected to reach 330 million cubic metres per day, up 6 million from the previous day, as flows improved slightly after outages.
