Europe gas: Prices down as milder weather mutes demand
Dutch and British wholesale gas prices were down on Thursday morning, following a rebound in the previous session, amid warmer weather and as the market continued to monitor any progress in Ukraine-Russia ceasefire talks.
The Dutch front-month contract was €0.53 lower at €43.19 per megawatt hour (MWh) by 0947 GMT, while the May contract edged down by €0.49 to €43.18/MWh, according to LSEG data. In Britain, the day-ahead contract was 2.50 pence higher at 104 pence per therm.
Demand for heating across northwest Europe is forecast to fall by 604 gigawatt hours per day (GWh/d) on the day-ahead to 2,535 GWh/d, LSEG data showed.
Supply from Norway and liquefied natural gas (LNG) cargoes remain robust.
"(Prices) are still in a zone which indicates that the market has not yet chosen a clear direction; still awaiting the outcome of the talks on the Ukrainian conflict," analysts at Engie's EnergyScan said.
U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy agreed on Wednesday to work together to end Russia's war with Ukraine.
Trump briefed Zelenskiy on his phone call on Tuesday with Vladimir Putin, in which the Russian president rejected a proposed full 30-day ceasefire sought by Trump that Ukraine said it would be prepared to accept, but agreed to pause attacks on energy infrastructure.
"The market's expectation of a quick resolution, in line with President Trump’s desire, will need to be reassessed. The scenario of a permanent peace agreement achieved through small steps over a longer period seems more plausible now," said Jorge León, head of geopolitical analysis at consultancy Rystad Energy.
"As such, the likelihood of an imminent increase in Russian oil and gas supplies in the market has decreased after the meeting," Leon added.
In the European carbon market, the benchmark contract was €0.05 down at €73.41 per tonne.
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