Europe Gas-Prices range bound on hopes on Iran deal

Benchmark Dutch and British wholesale gas prices traded in a narrow range on Wednesday morning after a heavy selloff earlier this week, as investors hope for a diplomatic solution to the Iran war.

US President Donald Trump warned on Tuesday that he could annihilate Iran if there is no deal to end the war, but also suggested an agreement could come soon amid meetings at the United Nations.

The benchmark Dutch front-month contract at the TTF hub TFMBMc1 inched up by €0.17 to €73.17 per megawatt hour (MWh) by 0844 GMT, ICE data showed.

The British front-month contract NGLNMc1 fell by 0.13 pence to 182.25 pence per therm.

Both contracts fell around 8% on Monday to their lowest intraday levels since September 7.

US envoy Steve Witkoff said in a post on X that the United States and Iran engaged in lengthy talks on Tuesday on the sidelines of the UN General Assembly through mediators "who shuttled between the two sides throughout the day".

The mediators will continue their work, Witkoff added, saying that he hoped Tuesday's discussions would "prove constructive and promising."

"The apparently successful uptake of direct diplomacy seems mostly priced in with the recent bearishness," said LSEG analyst Ulrich Weber.

Norwegian maintenance and heavy restrictions at the Karsto gas processing plant are ending and production should rise some by 15 million cubic meters per day on Thursday, with further improvements coming, especially when 46 mcm/d maintenance at the Troll gas field ends on September 26. Hence, a slight bearish impact could be possible, Weber said.

Changes in gas demand for heating and for power generation are small and balance each other to near zero overall change, he added.