Gas prices hold near €90 as tensions flare in Middle East
UNG•Dutch benchmark gas held just below €90 per megawatt hour after touching that level earlier in the week, its highest since December 2022. Middle East tensions added risk, while strong German wind output and rising expected LNG send-out could limit prices.
1. Dutch gas near €90
The Dutch front-month contract at the TTF hub rose €1.50 to €88.91 per megawatt hour by 0730 GMT on Thursday. It touched €90/MWh on Tuesday, its highest level since December 2022. The British front-month contract rose 4.14 pence to 219.36 pence per therm.
2. Supply and demand factors
Norwegian gas exports fell 24 million cubic metres per day to 302 million cubic metres per day and were expected to remain around that level for the next gas day before rebounding on October 24 if outages at Troll and Oseberg ended as scheduled. Reports of vessel strikes and increased Houthi attacks on Saudi infrastructure added to geopolitical risk. German wind generation was forecast well above seasonal norms, potentially reducing gas-fired power demand, while LNG send-out was expected to rise from Friday. The European benchmark carbon contract fell €0.60 to €85.31 per metric ton.
