Dutch and British gas prices were little changed on Tuesday morning with the market waiting for news from Ukraine-Russia peace talks later this week and as warm weather continued to limit demand.

The benchmark Dutch front-month contract (TRNLTTFMc1) was up 0.18 euro at 35.60 euros per megawatt hour (MWh) or $11.59/mmBtu, by 0807 GMT, LSEG data showed.

The contract on Monday touched 36.25 euros/MWh, its highest level since April 16, buoyed by news of a deal between the U.S. and China to lower tariffs, brightening the wider economic outlook.

The Dutch day-ahead contract (TRNLTTFD1) was up 0.40 euro at 35.75 euros/MWh.

The British day-ahead contract (TRGBNBBD1) was down 1.00 pence at 80.5 p/therm.

“There has been no notable change to the fundamental outlook across the prompt, thus we expect rangebound trading to continue today,” LSEG analyst Wayne Bryan in a daily research note.

However, he said prices could turn more volatile later this week depending on geopolitical events.

U.S. President Donald Trump offered on Monday to join prospective Ukraine-Russia talks in Turkey later this week as European countries pushed the Kremlin to accept their demand for a 30-day ceasefire in the war in Ukraine.

“Though it is unclear what these talks will result in, any positive news is bound to provide some relief to the market,” analysts at Northern Gas and Power said in a daily market note.
The European Union on Tuesday said it does not intend to revive its imports of Russian energy even after a potential peace deal between Ukraine and Russia.

Commissioner Dan Jorgensen’s comments came after Russia last week confirmed the issue gas shipments to Europe is being discussed at talks between Russia and the United States.

In the European carbon market, the benchmark contract (CFI2Zc1) was down 0.35 euro at 73.06 euros a metric ton.

Source: Reuters