Prices largely flat as strong inventories counter supply concerns
LONDON, Aug 20 (Reuters) -Dutch prices were mostly flat on Tuesday as strong storage inventories partially offset concerns over supply disruptions arising from the war between Ukraine and Russia as well as the Middle East conflict.
The benchmark front-month contract at the Dutch TTF hub TRNLTTFMc1 was down by 0.16 euro at 39.60 euros per megawatt hour (MWh), or 12.88 $/mmBtu, by 0844 GMT, LSEG data showed.
The October contract TRNLTTFMc2 was down 0.15 euro at 40.35 euros/MWh.
The British September contract TRGBNBPMc1 was down 0.25 pence at 96 pence per therm.
"No change to the outlook as EU gas storage levels now touch the 90% level required by November, whilst escalations in the Middle East and on the Ukraine-Russia border continue," consultancy Auxilione said in a morning note.
European gas storages were last seen 89.77% full, close to their 90% target that should be achieved by Nov. 1, Gas Infrastructure Europe data showed.
"Markets will continue to monitor developments at Sudzha, however, as the current status quo is that neither side appear to have no intention to halt flows, damage to infrastructure remains the chief concern. Developments on the U.S.-backed Middle East peace deal should also be monitored," said LSEG analyst Wayne Bryan.
Gas via Sudzha from Russia into Ukraine is still flowing and Russia's Gazprom GAZP.MM said it would send 42.4 million cubic metres (mcm) of gas to Europe via Ukraine on Tuesday, up from 42.1 mcm sent on Monday.
In the Middle East, concerns over the impact on gas flows from the Israel-Hamas war have eased after U.S. Secretary of State Antony Blinken said on Monday Israeli Prime Minister Benjamin Netanyahu had accepted a "bridging proposal" presented by Washington to tackle disagreements blocking a ceasefire deal in Gaza, and urged Hamas to do the same.
In the European carbon market, the benchmark contract CFI2Zc1 gained 0.26 euro to 73.40 euros a metric ton.
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Reporting by Marwa Rashad; Editing by Sherry Jacob-Phillips
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