Europe Gas-Prices firm as U.S.-Iran peace looks more elusive
UNG•European carbon market
In the European carbon market, the benchmark contract was down €0.15 at €81.43 per metric ton.
Prices firm on stalled U.S.-Iran peace hopes
Benchmark Dutch and British wholesale gas prices firmed on Tuesday morning after the official lapse of June's ceasefire agreement between Iran and the U.S., with both sides stepping up combative rhetoric, curbing hopes energy shipments through the Strait of Hormuz would resume.
The benchmark Dutch front-month contract at the TTF hub rose by €0.99 to €62.75 euros per megawatt hour (MWh) by 0808 GMT, ICE data showed.
The British front-month contract rose by 2.51 pence to 155.05 pence per therm.
Low storage and LNG competition support market
A 60-day deadline set by a June memorandum of understanding between Iran and the U.S. to reach a final peace agreement lapsed on Monday.
Instead, Iran has threatened a new offensive and U.S. President Donald Trump expressed no desire to extend the ceasefire deal while also threatening attacks on Oman. The latter has been working with Iran on an agreement to re-open shipping via the Strait of Hormuz, where liquefied natural gas (LNG) shipments remain stymied.
Geopolitics, the weather and low gas storages are all slightly supportive and reflected in prices, said Brainchild Commodity Intelligence analyst Klaas Dozeman.
While recent high temperatures have eased in Europe, cloudy weather and low wind speeds have limited renewable power generation, increasing demand for gas from gas-fired power plants.
EU gas stocks are 61.1% full – the lowest for this time of year in records going back to 2011 and 12.5 percentage points behind last year’s level, data from Gas Infrastructure Europe shows.
