Europe Gas-Prices edge up on caution around Hormuz agreement
XLE•Gas prices rise on Hormuz caution
Benchmark Dutch and British wholesale gas prices edged higher on Friday morning amid caution about an Iran-Oman agreement to facilitate shipping through the Strait of Hormuz.
The benchmark Dutch front-month contract at the TTF hub edged up by €0.52 to €56.29 euros per megawatt hour (MWh) by 0804 GMT, ICE data showed.
The British front-month contract was up 0.54 pence at 137.45 pence per therm.
Prices rose by over 5% on Thursday amid short covering as the market waited for signs the strait could reopen.
European supply and carbon market update
On Friday, total Norwegian export nominations are 3 million cubic metres (mcm) lower at 312 mcm/day, LSEG data showed.
Liquefied natural gas send-out to north-west Europe is expected to rise by 204 gigawatt hours (GWh) to 1,223 GWh/d mainly due to higher send-out nominations at Dutch terminals.
In the European carbon market, the benchmark contract was up €0.56 at €82.45 per metric ton.
Iran bill and analyst comments add to uncertainty
Iran's semi-official Fars news agency reported on Thursday, citing a lawmaker, that an Iranian parliamentary committee is reviewing a preliminary bill that would bar U.S., Israeli and other "hostile" vessels from transiting the Strait of Hormuz.
The draft bill would impose fines of up to 20% of a ship's cargo value for violations of the proposed restrictions.
"Developments over the last 24 hours or so demonstrate once again that negotiations between the U.S. and Iran are unlikely to proceed smoothly," said analysts at ING.
