Investing.com – European natural gas prices fell on Wednesday, as indications of growing supply helped mitigate uncertainty around the trajectory of talks to end the war in Iran.
dropped by 5.1% to 45.165 euros per megawatt hour, according to ICE data.
also declined 4.6% to 110.00 pence per therm.
Total Norwegian exports were nominated 5 million cubic meters a day higher at 293 mcm/d and 17 cargoes of liquefied natural gas are expected to arrive at terminals in northwest Europe over the next two weeks, Reuters reported, citing LSEG data.
This comes as news outlet Al Jazeera reported that indirect negotiations between the U.S. and Iran have continued, despite an exchange of fire earlier this week. The U.S. stressed that a shaky ceasefire remained in place, although Iran has warned of retaliation should the truce be violated.
U.S. Secretary of State Marco Rubio said this week that it will take a “few days” for Washington and Tehran to reach a deal.
Media reports over the weekend suggested that the U.S. and Iran were close to a framework accord. The terms of the agreement included an extension to the ceasefire and a reopening of the Strait of Hormuz, a vital waterway off Iran’s southern coast through which a fifth of the world’s oil flows. The strait has been largely shuttered since the start of the war in late February, crimping energy supplies and driving oil and natural gas prices higher.
Worries have abounded that this uptick in energy prices will fuel a burst of inflation in countries around the world. Expectations that central banks — including the Federal Reserve and European Central Bank — may raise rates to corral price pressures have subsequently grown.