Europe Gas-Prices fall on US-Iran diplomacy hopes, German gas storage tender
XLE•German storage tender and warmer weather add pressure
Details published on Monday of tenders by Germany to secure sufficient gas availability during the first quarter of 2027 called for lower volumes than initially expected, putting further pressure on prices.
“The market is reacting quite bearishly... The tender is the driving factor. So that's the big news of the day. That's what the market is watching," said Andreas Schroeder, ICIS' head of energy analytics.
A change in weather forecasts is also expected to curb gas demand next week.
“Next week appears to be a late summer heat spell, with temperatures rising 6 degrees Celsius above normal (for Northwest Europe)," LSEG analyst Ulrich Weber said in a market report.
In the European carbon market, the benchmark contract CFI2Zc1 was up €0.21 at €87.09 a metric ton.
European gas prices fall on diplomacy hopes and German storage tender
Dutch and British gas prices fell around 7% on Monday as this week's United Nations meeting in New York raised hopes for diplomatic progress on the Iran war, and a tender for gas storage in Germany called for lower volumes than expected.
The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was down €5.298 at €74.26 per megawatt hour, or around $24.96/mmBtu, by 1314 GMT, ICE data showed. The contract hit €73.205/MWh earlier in the session, a near 2-week low.
The British front-month contract NGLNMc1 was down 13.99 pence at 184.17 pence per therm.
"We open with price falls Monday morning in the wake of the growing hopes that the peace talks in the Middle East could resume soon," analysts at Mind Energy said in a daily market report.
The US and Iran continue to trade threats, but US President Donald Trump has indicated he may be open to meeting Iran’s president at this week’s UN assembly, raising the possibility of diplomacy aimed at ending the conflict.
