EUROPE GAS-European gas prices down on profit-taking, stable demand
LONDON, March 31 (Reuters) - Benchmark Dutch and British wholesale gas prices edged down on Tuesday morning on stable demand and profit-taking following recent gains, while market players kept an eye on developments in the Middle East.
The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was down 2.5% at 53.55 euros per megawatt hour (MWh), or around $17.89/mmBtu, by 0903 GMT, ICE data showed.
"For today, we expect prices to whipsaw on headline risk amid broadly stable fundamentals. Day-ahead demand is flat overall, with lower heating demand offset by an increase in gas for power consumption. On the supply side, flows remain stable, with no material change from either Norway or LNG," said Wayne Bryan, gas research principal at LSEG.
"Geopolitics is likely to remain the dominant source of volatility," he added.
U.S. President Donald Trump told aides he is willing to end the military campaign against Iran even if the Strait of Hormuz remains largely closed and leave a complex operation to reopen it for a later date, the Wall Street Journal reported on Monday, citing administration officials. Reuters could not immediately verify the report.
Meanwhile, EU Energy Commissioner Dan Jorgensen said in a letter to the bloc's energy ministers that while the fallout on Europe's energy supplies is currently contained, governments are "encouraged to make timely preparations in anticipation of a potentially prolonged disruption".
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.
In the European carbon market, the benchmark contract CFI2Zc1 was down 0.17 euro at 71.50 euros a metric ton.
