Europe gas prices rise as US rejects Iranian plan to reopen Hormuz
UNG•Dutch and British gas prices rose on Monday after President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz. The Dutch front-month contract gained €1.879 to €73.95 per megawatt hour, while the British contract rose 4.6 pence to 184.4 pence per therm.
1. Gas benchmarks advance
Dutch and British gas prices rose after Trump rejected Iran’s proposal over the weekend. The Dutch front-month contract was up €1.879 at €73.95 per megawatt hour, or about $24.66 per mmBtu, while the British contract gained 4.6 pence to 184.4 pence per therm.
2. Supply and demand factors
The conflict has curbed shipping through the Strait of Hormuz, which typically carries roughly a fifth of the world’s liquefied natural gas. Northwest European gas demand was expected to ease as wind output rose, while Norwegian maintenance constrained supply. Maintenance at the Troll field was trimming output by about 46 million cubic metres per day, but was expected to fall to 10 million cubic metres per day before production returned to full capacity on Wednesday.
