Europe gas prices rise amid Iran blockade threat and lower French nuclear output
UNG•European carbon prices edge lower
In the European carbon market, the benchmark contract edged down by €0.46 to €82.28 a metric ton.
French heatwave cuts nuclear output
LSEG gas analyst Dzmitry Dauhalevich said prices were also impacted by heat-induced outages at French nuclear facilities.
High temperatures affecting river levels and their ability to cool power plants were expected to cut French nuclear power production by about 15% of the nuclear fleet's total capacity on Friday, with six reactors expected to be fully offline, data from operator EDF showed.
Low nuclear output can boost demand for gas from gas-fired power plants.
Hormuz shipping curbed and LNG exports seen constrained
“Supply concerns are big at the moment, with the closure of Hormuz of course as the biggest threat,” analysts at Mind Energy said in a daily research note.
On Thursday, the United States warned that it could maintain a naval blockade of Iran indefinitely and ramp up economic pressure on Tehran as ceasefire talks have stalled.
Shipping through the Strait of Hormuz, through which roughly a fifth of the world's LNG typically passes, has been constrained since the conflict began at the end of February.
“Fundamentally nothing has changed, with LNG transits halted since 11 July, and we do not expect exports to recover meaningfully until at least Q4 26, given the complexities of achieving a durable peace agreement,” analysts at Energy Aspects said.
Gas prices rise on supply concerns and French nuclear outages
LONDON, Aug. 14 (Reuters) - Dutch and British gas prices rose on Friday morning after the United States threatened an indefinite naval blockade of Iran and as high temperatures curbed nuclear power output in France.
