Europe Gas-Prices range-bound as Hormuz reopening prospects dim
XLE•Prices steady after Tuesday morning pullback
Benchmark Dutch and British wholesale gas prices steadied on Tuesday morning after jumping more than 10% in the previous session, as the situation in the Middle East remained uncertain.
The benchmark Dutch front-month contract at the TTF hub was €0.11 lower at €60.68 per megawatt hour (MWh) by 0823 GMT, ICE data showed. It remains close to its highest level since July 24, after rising 12% on Monday.
The British front-month contract fell by 1.17 pence to 148.55 pence per therm.
Storage stays at a historic low for the time of year
North-west Europe is experiencing a warm spell with temperatures seen peaking on Friday, LSEG data showed.
EU gas storage sites were last 59.12% full, a historic low for the time of year, Gas Infrastructure Europe data showed.
In the European carbon market, the benchmark contract was down €0.54 at €81.73 per metric ton.
Hormuz tensions and Norway maintenance support the market
The Strait of Hormuz, a major waterway for 20% of the world's oil, looked unlikely to reopen soon after U.S. President Donald Trump on Monday responded to Iran's conditions for a peace deal with a demand that Iran pay compensation for people killed in wars, attacks and protests.
"Hopes for the Strait reopening faded once again, which, combined with a bullish long-term outlook, had a bullish effect on the market," said LSEG analyst Dzmitry Dauhalevich.
Meanwhile, maintenance at Norway's Ormen Lange gas field was prolonged to February 2027, from previously announced October 2026, slashing more than 1 billion cubic meters of gas supply through the European heating season, Gergely Molnar, an analyst from the International Energy Agency, said in a LinkedIn post.
