Prices rise on cold weather forecast
LONDON, Sept 25 (Reuters) -Dutch and British wholesale gas prices rose on Wednesday morning on forecasts for colder weather, raising heating demand, while market players continue to closely monitor geopolitical tensions in Ukraine and the Middle East.
The benchmark front-month contract TRNLTTFMc1 at the Dutch TTF hub was 1.09 euro higher at 36.50 euros per megawatt hour (MWh) by 0823 GMT, while the November contract TRNLTTFMc2 rose by 0.58 euro to 37.27 euros/MWh, LSEG data showed.
In the British market, the front month TRGBNBPMc1 was 0.75 pence higher at 87.00 pence per therm.
The first cold snap this fall is expected to hit Northwest Europe between Sept. 27 and Oct. 1, increasing gas demand for heating,said LSEG analyst Tomasz Marcin Kowalski.
In Britain, the coldest day is forecast for Sept. 28, with average temperatures 4 degrees below the seasonal normal, Kowalski said.
The market is closely monitoring weather conditions in the Gulf of Mexico, consultancy Auxilione said in a morning note,adding that escalations of tensions in the Middle East and on the Ukraine-Russia border continue to inject some volatility into markets.
The latest forecasts for Tropical Storm Helene in the United States signal it will miss most of the producing regions in the western and central Gulf of Mexico as it strengthens into a hurricane on Wednesday and hit the Florida Panhandle late Thursday.
Meanwhile, an intensifying conflict in the Middle East between Iran-backed Hezbollah in Lebanon and Israel, with cross-border rockets launched by both sides, has heightened fears ofa broadening war in the key producing region.
On the bearish side, Norwegian exports rose by 32 million cubic meters per day (mcm/d) on Wednesday morning, LSEG data showed.
European storage levels are currently near 94% of capacity, according to Gas Infrastructure Europe data.
In the European carbon market, the benchmark contract CFI2Zc1 inched up 0.48 euro to 64.35 euros per metric ton.
EXPLAINER-Is it the end for Russian gas supplies to Europe via Ukraine? nL8N3JZ0H0
EXPLAINER-What happens if Russian gas transit via Ukraine stops? nL8N3JV0SH
Reporting by Marwa Rashad; Editing by Eileen Soreng
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
