Dutch and British wholesale gas prices eased on Tuesday morning as the market awaited any news on a potential peace deal between Russia and Ukraine but low storage levels remain a concern and weather forecasts are mixed.

The Dutch front-month contract (TRNLTTFMc1) inched down by 0.55 euro to 40.65 euros per megawatt hour (MWh) by 0917 GMT, LSEG data showed.

The Dutch May contract (TRNLTTFMc2) was down 0.68 euro at 40.57 euros/MWh, while the day-ahead contract (TRNLTTFD1) eased by 0.20 euro to 40.80 euros/MWh.

In Britain, the day-ahead contract (TRGBNBPD1) was down 1.01 pence at 101.75 pence per therm.

All eyes will be on the outcome of the call between U.S. President Donald Trump and Russian President Vladimir Putin scheduled for 1300-1500 GMT and whether it may lead to a ceasefire in Ukraine, analysts at Energi Danmark said.

“Until then, the market is caught in uncertainty,” they added.

Traders holding speculative long positions in the gas market have become nervous that a potential peace deal between Russia and Ukraine could see the resumption of some Russian pipeline gas into Europe, analysts at ING said in a note.

Meanwhile, fresh tensions in the Middle East, with new Israeli air strikes on Gaza, could provide some bullish market sentiment, said LSEG analyst Yuriy Onyshkiv.

“Later this week, warmer temperatures are expected but the long-term view still forecasts below seasonal normal levels which may continue to pressure gas storages,” consultancy Auxilione said in its daily market report.

EU gas storage sites were last seen 34.84% full, compared with nearly 60% seen at the same time last year, data from Gas Infrastructure Europe showed.

In the European carbon market, the benchmark contract (CFI2Zc1) edged down by 0.12 euro to 69.99 euros a metric ton.

Source: Reuters