Gas prices in Europe falling due to warm weather
2022.12.22 06:54
Gas prices in Europe falling due to warm weather
Budrigannews.com – European natural gas prices fell for a fifth day because supplies are still plentiful and temperatures are expected to stay mild into the new year.
Benchmark prospects declined as much as 4.7%, in the wake of shutting at the most minimal level since mid-June on Wednesday. The mild and windy weather has stifled demand for gas, which has led to price drops over the past week. During the holiday season, industrial consumption typically decreases, having already been reduced earlier in the year due to high prices.
Supplies of liquefied natural gas also remain robust, with Germany opening two new import terminals and a flotilla of tankers heading to northwest Europe. After a difficult year in which rising energy costs hammered economies and contributed to inflation reaching its highest level in decades, the market situation is easing some of the concerns that policymakers had.
Despite this, traders are keeping an eye on the market for any indications of shifting gas flows as the price gap between Europe and Asia remains small. According to BloombergNEF, exporters from the United States will currently profit equally from sales to both regions in February and Europe in March.
Shell (LON:) is an indication that the market may tighten in Asia. following a fire, has temporarily suspended production at the floating LNG facility Prelude off the west coast of Australia.
More New reasons for oil growth
After falling 7.5% on Wednesday, Europe’s gas benchmark was 3.8% lower at €94 per megawatt-hour at 8:26 a.m. in Amsterdam. On Thursday, the equivalent in the UK lost 2.9%.
