Europe gas prices fall on soft demand and Iran talks
UNG•Dutch and British front-month gas prices fell on Tuesday morning as weak demand and hopes for a US-Iran deal weighed on the market. The Dutch contract was down €0.73 at €72.70 per MWh, while the British contract fell 1.55 pence to 181.70 pence per therm.
1. Prices decline
The Dutch front-month contract at the TTF hub was down €0.73 at €72.70 per megawatt hour, or around $24.16 per mmBtu, by 0845 GMT. The British front-month contract was down 1.55 pence at 181.70 pence per therm.
2. Demand and supply
LSEG analyst Saku Jusslia said Northwest Europe's fundamentals were bearish, with easing demand for heating and power generation as mild weather persisted. Recovering Norwegian supply was adding to continental import flows and supporting stronger storage injections.
3. Iran talks weigh
Officials from the United States and Iran spoke separately with mediators on Monday as part of efforts to end the seven-month war. President Donald Trump said he had offered Iran nothing, while Iranian President Masoud Pezeshkian said Tehran was ready for talks but would not accept coercion. Jusslia said bearish fundamentals and hopes for progress in the talks were limiting further upside, with trading expected to move sideways.
