Dutch and British wholesale gas prices were steady on Friday morning as markets remain in a wait-and-see position regarding peace talks between the United States and Iran, while a heatwave in Eurpeo is supporting prices.
The benchmark Dutch front-month contract at the TTF hub (TFMBMc1) was down €0.27 at €43.91/per megawatt hour (MWh) or around $14.74/mmBtu, by 0847 GMT, ICE data showed.
The British June contract (NGLNMc1) was almost flat at 104.50 pence per therm.
"While geopolitical risks and LNG supply concerns continue to provide underlying support, the recent move higher appears somewhat sentiment-driven, leaving prices vulnerable to profit-taking should no further supply disruptions emerge," said Wayne Bryan, head of gas research at LSEG.
He added that prices would find support from heatwave-related risks and concerns that elevated river temperatures could constrain French nuclear output if regulatory limits are breached.
Over 30% of French reactors use river water for cooling. Temperatures across north-west Europe remain above normal levels and between July 10-15 there is chance of another heatwave.
Analysts at Engie's EnergyScan said that during the week ending June 26, investment funds reduced their net long positions on the TTF by 30 terawatt-hours to 154 TWh, after reducing them by 51 TWh the previous week.
"Like the other market participants, investment funds remain cautious, waiting to see first whether the resumption of traffic through the Strait of Hormuz will trigger a rebound in European LNG imports before selling in more significant volumes," they said in a morning note.
Europe’s gas stores are 49.22% full, compared to 59.15% last year, the latest data from Gas Infrastructure Europe showed.
In the European carbon market, the benchmark contract ICEENDEX:ECF1! edged up by €0.03 to €79.48 a metric ton.