Natural gas prices falling in Europe due to low demand
2023.01.24 04:58
Natural gas prices falling in Europe due to low demand
By Tiffany Smith
Budrigannews.com – European natural gas decreased as an ongoing icy spell was anticipated to end next week and fuller-than-normal stockpiles countered higher demand.
Benchmark futures extended Monday’s decline by as much as 11%. The cold weather has increased the use of gas for heating, but strong deliveries of liquefied natural gas and high storage levels are easing tensions and keeping prices under control.
According to Maxar Technologies (NYSE:), a forecaster, temperatures in northwest Europe are expected to become milder soon, with warmer weather anticipated through the first week of February. Inc. Europe can rest assured that it won’t run out of energy at the end of this winter thanks to steady LNG flows and stocks.
That combats Russia’s lower flows and Norway’s supply restrictions caused by maintenance. Earlier this month, gas prices fell to a 16-month low, easing some concerns about inflation and the region’s economy.
In a weekly note, analysts at Alfa Energy stated, “Despite the colder weather, gas markets remained relatively stable.” Price volatility is not anticipated until early February, when the weather is expected to return to normal.
On Tuesday, Norway, Europe’s leading gas supplier, was recovering from some of the recent cuts brought on by planned and unplanned outages; however, the country’s total shipments remain below its maximum capacity.
By 8:10 a.m. in Amsterdam, the benchmark for Europe was €60.50 per megawatt-hour, down 8.3%. This month, it has decreased by 21% so far.
