EUROPE GAS-European gas prices edge higher as supply risks offset weaker demand

LONDON, March 30 (Reuters) - Benchmark Dutch and British wholesale gas prices edged higher on Monday after Yemeni Houthis launched their first attacks on Israel over the weekend, widening the U.S.-Israeli war with Iran and raising fears over supply disruptions.

The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was up 1.183 euros at 55.36 euros per megawatt hour (MWh) or around $18.65 /mmBtu, by 0810 GMT, ICE data showed.

The British April contract NGLNMc1 was up 3.61 pence at 139.76 pence per therm, ICE data showed.

Around a fifth of the world’s LNG typically transits through the Strait of Hormuz but shipping through the narrow strait has come to a near-standstill since the U.S. and Israel began strikes on Iran on February 28.

“With little sign of de‑escalation following weekend developments, geopolitical risk remains elevated and could continue to support prices across the curve, despite increasingly softer near‑term fundamentals,” LSEG analyst Wayne Bryan said in a daily research note.

Oil prices rose more than 3% on Monday to over $115 a barrel.

“European gas prices are increasing more moderately ... as comfortable domestic fundamentals (higher wind generation in particular) are triggering some downward pressure,” analysts at Engie EnergyScan said in a daily research note.

In Northwest Europe temperatures were expected to be higher than seasonal norms at the beginning of April, while demand from the power sector was also expected to fall as renewable power output, such as wind, was forecast to increase, LSEG data showed.

In the European carbon market, the benchmark contract CFI2Zc1 was down 0.17 euro at 71.50 euros a metric ton.