EUROPE GAS-Prices rebound after US tariff pause
LONDON, April 10 (Reuters) - Dutch and British gas prices rebounded on Thursday after U.S. President Donald Trump announced an immediate 90-day pause on tariffs for many trading partners.
The benchmark Dutch front-month contract TRNLTTFMc1 was up 1.5 euros to 34.70 euros per megawatt hour (MWh) or $11.21/mmBtu, by 0818 GMT, LSEG data showed.
The contract hit a low of 32.50 euros/MWh in intra-day trading on Wednesday, its lowest since July 2024, LSEG data showed.
The Dutch June contract TRNLTTFMc2 was up 2.31 euros at 35.91 euros/MWh.
The British day-ahead contract TRGBNBBD1 was up 2.4 pence at 85.15p/therm.
Trump's announcement on Wednesday of a pause on most new tariffs, while raising the tariff rate for China to 125%, drove European shares sharply higher on Thursday after days of losses.
"Energy markets have reacted also the news and have shown some upside this morning," consultancy Auxilione said in a daily market note. "The outlook however remains unchanged - that is with huge uncertainty as to what comes next."
Price falls on Wednesday had put the gas front-month contract in over-sold territory, judged by technical metrics.
The relative strength index (RSI) of the Dutch-front month fell below 30 on Wednesday, according to LSEG data, a technical threshold indicating a stock or commodity may be due for an upward correction.
Europe's gas storage sites ended the winter season almost two-thirds empty and analysts said the need to replenish stocks also provided support.
"Overall, the European gas balance remains tight, and net storage withdrawals resumed from 7 April; on 8 April, EU gas stocks were 34.97% full on average, compared to 60.72% last year," analysts at Engie EnergyScan said.
European Union countries are considering rules that would let them deviate by 10 percentage points from the bloc's requirement to fill gas storage 90% before winter, EU diplomats told Reuters on Wednesday.
In the European carbon market, the benchmark contract CFI2Zc1 was up 2.46 euros at 63.40 euros a metric ton.
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