RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2022-11-01 17:05:00

EUROPEAN GAS PRICES FALL

EUROPEAN GAS PRICES FALL

BLOOMBERG- Nov 1, 2022 - Natural gas prices in Europe fell further as a spell of warm weather delayed the heating season, providing some respite to regional economies on the brink of recession.

Benchmark futures dropped as much as 5.5%. Prices have declined sharply in recent weeks as a hot October allowed more gas to be pumped into already fuller than normal storage sites. Ample inflows of liquefied natural gas and reduced consumption by industries have also helped offset Russia’s supply cuts.

The mild weather is likely to extend into this month, with forecasters Maxar Technologies LLC and Marex expecting no cold spells in November. It comes as a relief for consumers worried about the cost of heating and for governments keen to ensure healthy gas stockpiles for as long as possible.

“Record warmth in October has eroded as much as 10% of weather-related demand,” analysts at JPMorgan Chase & Co. said in a note. The bank lowered its price estimates for the forth quarter, “reflecting the current softness in the balance, but assume normal December weather.” 

Europe’s gas storage sites are nearly 95% full, providing a buffer for when the weather turns colder. Reserves in the biggest gas consumer, Germany, have risen to 99%, according to Gas Infrastructure Europe.

Inventories are in a good shape, but the big question is how winter progresses, meaning prices will continue to be volatile, Alfred Stern, chief executive officer of Austrian energy company OMV AG, told Bloomberg TV.

Dutch gas futures for December, Europe’s benchmark, were 4.7% lower at €117.51 per megawatt-hour by 9:40 a.m. in Amsterdam. The UK equivalent contact declined 4.8%.

Coming at a Cost

Risks still remain on the horizon as global supplies are tight. Despite the recent decline in prices, European gas is about four times higher than normal for this time of year. While supply concerns for this winter are easing, next year could be harder as refilling inventories is likely to be more challenging without the usual Russian supply.

“Alternative fuel sources will fill the gap, but they will come at a cost,” Caroline Bain, chief commodities economist at Capital Economics, said in a note. The group expects energy prices in general to remain elevated in 2023.

Policy makers are weighing more measures to ensure Europe’s economies are protected from any further surge in energy costs. European Union energy ministers are targeting clinching a deal on another batch of proposals later this month. 

-----


Earlier:

EUROPEAN GAS PRICES FALL
2022, October, 31, 12:05:00
EUROPEAN GAS PRICES UPDOWN ANEW
The recent fall in European gas prices may not last, according to Italian energy major Eni SpA. “It’s a temporary situation,” Chief Executive Officer Claudio Descalzi said in Abu Dhabi. “We have problems in 2023 because in 2023 we don’t have Russian gas.”
EUROPEAN GAS PRICES FALL
2022, October, 31, 12:00:00
EUROPEAN WINTER GAS RISKS
The push to fill storage facilities before the start of winter has been successful -- with many close to capacity. But some suppliers may now want to hold back those reserves until they can sell their stored gas at more attractive rates.
EUROPEAN GAS PRICES FALL
2022, October, 28, 12:00:00
EUROPEAN GAS PRICE UPDOWN
Dutch front-month gas, Europe’s benchmark, rose 3.4% to €111 per megawatt-hour at 8:57 a.m. in Amsterdam, paring some of the weekly decline.
EUROPEAN GAS PRICES FALL
2022, October, 28, 11:55:00
EUROPEAN GAS DEFICIT
While US fuel now makes up 40% of Europe’s liquefied natural gas imports, it will only offset a fraction of the deficit from Russia next summer,
EUROPEAN GAS PRICES FALL
2022, October, 27, 15:25:00
GAS: A KEY ROLE
As the cleanest hydrocarbon fuel, natural gas is seen as the perfect solution that strikes the right balance, and will continue to play a key role in the future energy mix.
EUROPEAN GAS PRICES FALL
2022, October, 27, 15:20:00
GLOBAL GAS CONSUMPTION WILL UP
Further in 2023, consumption is forecasted to increase by up to 1.1% driven by China, South and South East Asia and the Middle East.
EUROPEAN GAS PRICES FALL
2022, October, 26, 10:40:00
EUROPEAN GAS PRICE CAP
The other cap in the mix is one to limit the price of gas used in electricity generation, which is backed by a vociferous group of member states.
All Publications »
Tags: EUROPE, RUSSIA, GAS, PRICE