Dutch and British wholesale gas prices on Thursday extended their decline from Tuesday's two-year high as the market watched for further developments on efforts by US President Donald Trump to end the war in Ukraine.
The benchmark front-month contract at the Dutch TTF hub was down 2.85 euros at 53.05 euros per megawatt hour (MWh), or $16.21/mmBtu, by 1003 GMT, LSEG data showed.
The contract remained well below an intra-day high of 59.27 euros/MWh reached on Tuesday, its highest level since February 2023.
The Dutch April contract was down 2.99 euros at 52.93 euros/MWh.
In Britain, the front-month contract was down 3.76 pence at 129.09 p/therm, Reuters reported.
The unilateral peace talks started by president Trump yesterday should bring some relief to markets because they decreases the chance of large-scale disruptions, said Klaas Dozeman, market analyst at Brainchild Commodity Intelligence.
Dozeman added, however, that it is unclear what role gas might play in any future scenario.
US President Donald Trump spoke directly to Russian President Vladimir Putin and announced the start of negotiations.
Further price pressure came from a push by several EU member states to lower gas storage targets, as well as the prospect of warmer weather, a trading source said.
EU gas storage sites are currently 47.24% full after cold weather and reduced Russian supplies triggered a faster drawdown of stocks, Gas Infrastructure Europe data shows.
"It has become increasingly likely that cold weather will end in Western-Europe after Feb 19. Instead a mix of spring and autumn will conquer the continent with temperatures well above norms and ample sun and/or wind," Dozeman said.
In the European carbon market, the benchmark contract was down 1.52 euros at 81.07 euros a metric ton.
