Europe gas prices rise on renewed Middle East tensions, Iran's closure of Hormuz
XLE•European gas market tightness and weaker wind support demand
The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was up €1.78 to €50.43 per megawatt hour (MWh), or $16.87/mmBtu by 0804 GMT, its highest intra-day level since June 8, ICE data showed.
The British front-month contract NGLNMc1 fell by 4.48 pence to 121.65 pence per therm.
The number of vessels transiting the Strait of Hormuz fell on Sunday to the lowest number in five weeks, with only six ships transiting, shipping data showed.
"The maritime security threat remains severe," said Daniel Hynes, senior commodity strategist at ANZ.
"The disruptions have already caused some concern that Europe will not be able to refill its storage facilities ahead of the winter heating season," he said.
In the first eight days of July, European LNG imports fell more than 15% year-on-year, to levels 18% lower than last month, Hynes added, citing Kpler data.
Europe’s gas stores are 51.84% full, compared to 62.23% last year, the latest data from Gas Infrastructure Europe showed.
Temperatures across Northwest Europe have adjusted slightly lower for July 13-21 and a bit higher thereafter, LSEG data showed.
Gas for power demand expectations are up by 10 million cubic meters per day on the day-ahead at 37mcm/d, as wind output plummets over the next three days.
In the European carbon market, the benchmark contract CFI2Zc1 was down €0.23 to €79.42 a metric ton.
Gas prices rise on Middle East tensions and Strait of Hormuz concerns
LONDON, July 13 (Reuters) - Benchmark Dutch and British wholesale gas prices rose on Monday morning as U.S. and Iranian forces exchanged heavy missile fire and drone attacks, with Tehran targeting U.S. facilities in states across the Gulf.
