European gas prices at a lower level of a month
The wholesale nature gas prices in Europe fell to the lowest of a month on Tuesday, as US President Donald Trump repeled the threat of new military attacks on Iran and guided new peace talks between Russia-Ukraine
THE PRICE OF THE FRONT-END CONTRACT OF THE DUTCH TITLE TRANSFER FACTORY (TTF) FELL BY 0.45 % TO 82 EUROS PER MW, WHICH IS THE LOWEST IN A MONTH. SIMILARLY, THE UK’S NATIONAL BALANCING POINT (NBP) CONTRACT ALSO FELL TO THE 205 PENSE PER THERMO AND REACHED THE LOWER LEVEL OF A MONTH
The European Forward Gas Curve is constantly affordable because of the rapid sell-off in the global crude oil benchmark, which breaks the cycle of the smell of the energy markets in autumn
BRENT CRUDE FUTURES $2.39 (2.58 %) FELL BY $90.18 PER BARREL, WHILE THE US WEST TEكسAS INTERMEDIATE (WTI) FUTURES $2.11 (2.43 %) IS TRADING ON THE COMPONENT $84.74
This intraday decline is advancing a historical liquidation phase of petroleum complex. Brent now falls down to about 23 %, which came from the peak of $118 on October 30
The fast-paced deflation has diverted the market’s focus from the supply-less panic to the potential greater supply in the next year
Trump Prevents Iran Strikes
The main reason why a geo-political risk premium removal from energy markets was a change in Washington’s clear language. On Monday, Trump said he would stop new military actions against Iran. The decision came after the appeal of the mediation of the Prime Minister of the Middle-East, especially in many countries
Diplomatic intervention largely reduced the fear of the constant barrier of energy supply and infrastructure in Persian Gulf. The White House was likely to increase the attack after mid-year elections, but the reports of maritime attacks in potential disruption and Hormuz Straight in shipping still alert the baseline supply
Europe’s gas hubs had to further accelerate the decline in the unpredictable diplomatic development in Eastern Europe. Russian and Ukrainian officials planned to speak directly for the first time in the US arbitration on Tuesday, which will be the first meeting after February. The move came from the hope of the comprehensive peace agreement suggested last week by Trump
For Europe’s gas and utility buyers, the likelihood of stress reduction on the eastern border reduced the long-term geo-political premium embedded in the winter supply contract, which helped institutional investors unwind the defensive haze and benchmark prices to move towards the lower boundary of the summer end
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Conclusions for Nature Gas Traders:
Trump’s diplomacy and global oil decline has pushed European gas prices to a lower level of one month. Traders should now pay attention to the over-supply prospects in this affordable supply environment and take advantage of the revitalization of possible prices by gradually reducing the hedge