2022-11-18 11:20:00
EUROPEAN GAS PRICES UPDOWN
BLOOMBERG- Nov 17, 2022 - Natural gas prices in Europe pared losses ahead of what is expected to be the first brief cold snap testing the region’s resilience ahead of the winter.
While weather forecasts point to warmer temperatures at the end of November and early December, they will will drop below seasonal norms on Friday, pushing up demand as households might finally switch on their heaters.
Benchmark futures settled 1.2% lower after slumping as much as 10.2% earlier on Thursday. Day-ahead prices surged as temperatures in Berlin will drop as low as minus 2.5 degrees Celsius on Friday, Maxar said.
Next week, however, warmer weather is expected in Scandinavia while above-normal temperatures are seen for southwest Europe, the forecaster said in a report.
Traders are keeping a close eye on weather trends as Europe’s gas storage is almost full, which should serve as a buffer for the winter. Mild temperatures and strong LNG flows have eased supply concerns in recent weeks, but stocks could be quickly depleted if a sudden cold snap boosts demand.
Several analysts predict Europe will be able to go through its first winter with curbed Russian supplies -- if the weather remains mild. But volatility remains and gas prices are still more than three times above the average of the last five years. Experts and authorities have continued to urge the population to save energy.
“We are in a better situation, but that doesn’t mean we should relax,” Catherine MacGregor, chief executive officer of Engie SA, said at the Bloomberg New Economy Forum in Singapore on Thursday. “On prices, one can expect continued volatility.”
Meanwhile, the European Union is continuing talks about ways to limit spikes in gas prices ahead of a meeting of energy ministers next week. At the same time, consumers in the UK will see their power and gas bills jump from April, according to the Autumn Statement laid out by Chancellor of the Exchequer Jeremy Hunt.
Dutch front-month futures, Europe’s gas benchmark, settled at €112.556 a megawatt-hour. Day-ahead price surged as much as 8.7% on Friday. UK front-month gas was down 0.7%.
-----
Earlier:
2022, November, 16, 11:00:00
EUROPEAN GAS PRICES UP
Benchmark gas futures settled 9.2% higher, following an increase of 16% on Monday. Freeport LNG in Texas will likely extend an outage that began in June, increasing global competition for much-needed supplies right before the winter.
2022, November, 7, 11:55:00
EUROPEAN GAS PRICES FALL ANEW
Risks over existing gas supplies from Russia will continue through the coming months, with just one pipeline route open to the biggest European customers.
2022, November, 3, 12:20:00
EUROPEAN ENERGY TRANSFORMATION
Currently, the most expensive form of generation -- gas -- sets the price for all electricity that’s sold into the market. That means consumers are bearing the brunt of Russia’s supply cuts to the continent. It also means Europe isn’t feeling much of the benefit of low-cost renewables like wind farms, which get to sell at big margins.
2022, November, 2, 11:45:00
EUROPEAN GAS PRICES RISE
Dutch front-month gas, Europe’s benchmark, traded 2.4% higher at €119 per megawatt-hour by 8:43 a.m. in Amsterdam after losing 5.8% a day earlier.
2022, November, 1, 17:05:00
EUROPEAN GAS PRICES FALL
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.
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.”
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.
