Gas prices fall on US-Iran diplomacy hopes, milder weather forecast
XLE•Carbon market update
In the European carbon market, the benchmark contract <CFI2Zc1> was up €0.66 at €87.55 a metric ton.
Market views on supply, demand and storage
"We open with price falls Monday morning in the wake of the growing hopes that the peace talks in the Middle East could resume soon," analysts at Mind Energy said in a daily market report.
The US and Iran continue to trade threats, but US President Donald Trump has indicated he may be open to meeting Iran’s president at this week's UN assembly, raising the possibility of diplomacy aimed at ending the conflict.
The Iran conflict has curbed shipping transit through the Strait of Hormuz, through which roughly a fifth of the world's LNG typically passes, pressuring global gas prices.
A change in weather forecasts is also expected to curb gas demand next week.
“Next week appears to be a late summer heat spell, with temperatures rising 6 degrees Celsius above normal (for Northwest Europe)," LSEG analyst Ulrich Weber said in a market report.
Europe’s gas stores are 69.62% full, latest data from Gas Infrastructure Europe showed.
"The rebound in Norwegian supply (266 million cubic metres/day on Friday, compared to 255 mcm/d on Thursday) and the drop in gas demand led to an increase in European net gas storage injections," analysts at Engie EnergyScan said.
Gas prices fall on diplomacy hopes and milder weather
LONDON, Sept. 21 (Reuters) - Dutch and British gas prices fell on Monday morning as this week's United Nations meeting in New York raised hopes for diplomatic progress on the , and with temperatures expected to be unseasonally mild next week.
