Europe gas prices steady as Trump delays Iran strikes
UNG•Dutch and British benchmark gas prices traded in a narrow range after Donald Trump said he would hold off striking Iran for now. Warmer, windier weather is forecast to cut Northwest European heating demand by 175 GWh per day.
1. Prices trade in narrow range
The Dutch front-month contract at the TTF hub was up €0.29 at €82.79 per megawatt hour by 0927 GMT. The British front-month contract was up 0.88 pence at 206.10 pence per therm. Analysts said the risk premium fell sharply after Trump downplayed the likelihood of renewed strikes on Iran, though he said the US naval blockade in the Strait of Hormuz would continue for now.
2. Weather and storage
Northwest European gas demand for heating is forecast to fall by 175 gigawatt hours per day to 3,320 GWh per day amid warmer and windier weather. Recent forecasts point to a colder December than previously projected, with temperatures revised 0.5 degrees Celsius lower; an LSEG analyst said this could support prices, which had lost around €19 per MWh over the past ten days. European gas storage was 72.38% full, compared with 82.61% a year earlier.
