Europe Gas: Prices at fresh 15-month high amid cold weather, restocking concerns
Dutch and British wholesale gas prices rose to a fresh 15-month on Friday morning as cold weather forecasts boosted demand and on concerns over storage refilling amid tightness in the market.
The benchmark front-month contract at the Dutch TTF hub was up down 0.78 euro at 51.60 euros per megawatt hour (MWh), or $15.80/mmBtu, by 0948 GMT, its highest level since mid October 2023, according to LSEG data.
The Dutch March contract was up 0.50 euro at 52.22 euros/MWh.
In Britain, the front-month contract rose by 2.25 pence to 132.00 p/therm.
Demand for gas for heating is up 766 gigawatt hours per day (GWh/d) for the day-ahead, 73 GWh/d for the weekend and 43 GWh/for working days next week, due to an average temperature drop of around 3 degrees Celsius, LSEG data showed.
"Concerns about rapidly declining gas storage levels has seen countries working to ensure refills, with Germany proposing subsidies and Italy preparing an early start to seasonal storage," said Daniel Hynes, senior commodity strategist at ANZ bank.
EU members are required to have storage levels at 90% full by November, However, this year they will face stiff competition from other consumers amid tightness in the global LNG market, he added.
EU gas storage levels were 54.65% full on Friday, data from Gas Infrastructure Europe showed.
"There could be some softening from current high prices if February brings milder weather. However the market is set to plateau at quite a strong level across most of the spring and summer as Europe continues competing with Asia for flexible LNG to refill its storage," said Alex Froley, LNG analyst at data intelligence firm ICIS.
Hungarian Prime Minister Viktor Orban threatened on Friday to block the next rollover of EU sanctions against Russia unless Brussels helps achieve a restart of Russian gas transit via Ukraine, which was halted on Jan. 1.
In the European carbon market, the benchmark contract was down 0.60 euro at 82.35 euros a metric ton.
(Reporting By Marwa Rashad; Editing by Nina Chestney)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
4 hours ago
- Arabian Post
Middle East M&A Set to Wobble Amid Tariff‑Driven Volatility
Mergers and acquisitions across the Middle East are poised to slow as escalating global trade tensions erupted following the Trump administration's imposition of reciprocal tariffs on 2 April. A sweeping 20 percent tariff on EU goods, 10 percent on UK imports and 25 percent on automobiles rattled markets and shook corporate confidence, triggering what dealmakers describe as a 'major escalation' in international trade friction. A recent global survey conducted by Norton Rose Fulbright and Mergermarket, canvassing 200 senior M&A decision‑makers, indicates that 55 percent of respondents anticipate a dip in deal-making throughout the region, while a mere 11 percent foresee an uptick in activity. These figures mark a stark turn from January, when Middle East M&A outlook was bullish, buoyed by sovereign wealth funds and private equity activity following a robust 2024. The tariff announcement disrupted what had been steady global deal valuations. Data from Dealogic showed global M&A value plummeting to US $243 billion in April, marking a 54 percent drop on the previous month and the lowest total since US deal signings hit multi-decade lows in May 2009. The toll on investment banking fees has been equally significant, falling around 10 percent in the first quarter as volatile market conditions weighed on corporate balance sheets. Wall Street bankers acknowledge a cautious stance among clients. Goldman Sachs described increased dialogue but notable deal backlogs, while Morgan Stanley's Ted Pick characterised the period as a 'pause' rather than a full‑blown slump. JPMorgan echoed the sentiment, with CFO Jeremy Barnum describing a 'wait‑and‑see' environment arising from tariff‑induced uncertainty. ADVERTISEMENT Within the Middle East, M&A flare-up in 2024 rested on government-led diversification drives, notably under Saudi Vision 2030 and the UAE Centennial Plan 2071, with sovereign and government‑related investment institutions heavily involved. Private equity also sustained momentum by increasingly deploying capital into outbound and domestic transactions, particularly in technology, healthcare and consumer sectors. However, the tariff escalation has now weighed heavily on deal-making appetite. More than two‑thirds of global respondents indicated that the trade spat had dampened appetite for deals, with Middle East executives echoing this concern. Access to debt is also under pressure: 35 percent anticipate greater difficulty securing M&A financing, and private credit is expected to fill the emerging liquidity gap, notably in the Middle East and Southeast Asia. Despite headwinds, deal professionals are recalibrating rather than retreating. Almost two‑thirds of respondents anticipate rising use of representations and warranties insurance during 2025, with almost half in the Middle East expecting significant adoption, potentially smoothing future transaction risk. Meanwhile, over half have moved to acquire AI businesses to strengthen due diligence and sourcing capabilities. Deal structure and thematic shifts are also emerging. Energy and healthcare sectors in the region are increasingly seen as ripe for reverse‑ESG warranties, a mechanism allowing sellers to assure buyers on non‑financial risks. Firms are also gravitating towards domestic strategic targets, following patterns seen in other emerging markets, though Middle Eastern SWFs continue to pursue sizable outbound investments. The political geography further complicates the outlook. Positioned between growing US‑China rivalry, the Middle East risks exposure to geopolitical ripples. Deals tied to global value chains may be reconsidered as investors reassess jurisdictional risk. Meanwhile, the region's regulatory frameworks such as UAE free zones remain attractive for inbound private enterprise and joint ventures. Despite these headwinds, there is cautious optimism for a rebound in the latter half of the year. Financial institutions are beefing up private-credit infrastructure, deal insurance is gaining traction, and emerging technologies like AI continue garnering strategic interest. Should global trade tensions ease, Middle East M&A could reclaim its 2024 growth trajectory, reaffirming its status as a cornerstone of global deal-making.
The National
6 hours ago
- The National
EU plans to remove the UAE from its 'high-risk' money-laundering list
The European Union plans to remove the UAE from its list of countries that pose a high risk for money laundering, amid growing efforts by the Emirates to boost its regulatory framework. The European Commission, the EU's main executive body, said on Tuesday that the list was updated after taking into account the work of the Financial Action Task Force (FATF) and in particular its list of 'Jurisdictions under Increased Monitoring'. The FATF, the global body that combats money laundering and terrorism financing, removed the UAE from its "grey list" in February last year after significant reform progress. The Emirates was placed on the grey list in 2022. "As a founding member of FATF, the Commission is closely involved in monitoring the progress of the listed jurisdictions, helping them to fully implement their respective action plans agreed with FATF," the European Commission said. The commission added 10 countries to the high-risk list, including Algeria, Angola, Côte d'Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela. Along with the UAE, others taken off the list include Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal and Uganda. However, the updated list will enter into force only after it receives the no‑objection from the European Parliament and the Council within a period of one month (which can be extended for another month). The commission said it had "carefully considered the concerns expressed regarding its previous proposal and conducted a thorough technical assessment, based on specific criteria and a well‑defined methodology, incorporating information collected through the FATF, bilateral dialogues and on‑site visits to the jurisdictions in question". The UAE has made significant progress in combating money laundering and the financing of terrorism over the past few years, passing strict laws and issuing a number of regulations to clamp down on financial crime. In September last year, the UAE set out a nationwide action plan aimed at combating terrorism financing and money laundering. The 2024-27 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing has 11 goals focused on risk-based compliance, effectiveness and sustainability. The enhanced framework, overseen by the Higher Committee and led by an expanded National Committee, includes the former Executive Office of Anti-Money Laundering and Counter Terrorism Financing, which now serves as the General Secretariat. In August, the government also amended its laws against money laundering and the financing of terrorism and crime groups and formed a national committee on these crimes. As part of its AML/CFT reforms, the UAE is adding measures to assist with investigations, imposing sanctions in cases of non-compliance at financial institutions, and increasing the number of prosecutions to combat money laundering. The UAE Central Bank has been imposing a growing number of fines and penalties in recent months to clamp down on violators. On Tuesday, the regulator imposed varying financial sanctions on six exchange houses in the UAE, amounting to Dh12.3 million (due to "violations and failures" to comply with the AML/CFT framework and related regulations. In May, it issued one exchange house with a Dh3.5 million fine, while another was slapped with a Dh100 million levy for 'significant failures' in its AML/CFT framework and related regulations. The regulator last month also fined an exchange house Dh200 million for the same offence. A Dh500,000 fine was also imposed on a branch manager, who was banned from working in any licensed financial institutions in the UAE. The Central Bank also recently fined two branches of foreign banks operating in the country a total of Dh18.1 million for breaching anti-money laundering regulations.
Gulf Today
11 hours ago
- Gulf Today
EU removes UAE from 'high-risk' money-laundering list
The European Union (EU) on Tuesday announced the removal of the United Arab Emirates from its money-laundering "high-risk" list but added Monaco alongside nine other jurisdictions. The European Commission said it added Algeria, Angola, Ivory Coast, Kenya, Laos, Lebanon, Namibia, Nepal and Venezuela, along with Monaco, to the list of countries subject to extra monitoring of their money laundering controls. In addition to the UAE, it removed Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal and Uganda. The moves come after a money-laundering watchdog said in February it had removed the Philippines from its list of countries that face increased monitoring, while adding Laos and Nepal. The Financial Action Task Force (FATF), a Paris-based organisation that reviews efforts by more than 200 countries and jurisdictions to prevent money laundering and terrorism financing, compiles a "grey list" of nations that are subject to increased monitoring of financial transactions. Monaco has been included on the FATF list since mid-2024, along with EU member states Bulgaria and Croatia. "The commission has now presented an update to the EU list which reiterates our strong commitment to aligning with international standards, particularly those set by the FATF," the EU's commissioner for financial services, Maria Luis Albuquerque, said. The EU list will now be scrutinised by the European Parliament and member states and will enter into force within one month if there are no objections, the commission said. In a statement, Monaco's government said it had "taken note of this expected update, which would lead to Monaco being placed on the EU's list, unless the European Parliament or the Council of the EU decides otherwise." It also stressed its commitment to take the necessary steps to be removed from the FATF's grey list "in the short term." Agence France-Presse
