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2022-12-02 09:45:00

EUROPEAN GAS PRICES UPDOWN AGAIN

EUROPEAN GAS PRICES UPDOWN AGAIN

BLOOMBERG- Dec 1, 2022 - Natural gas prices slipped after a volatile session, with traders weighing European Union efforts to ease the burden of higher bills for consumers against an outlook for colder weather, which could boost demand.

Benchmark futures settled 4.9% lower after jumping as much as 13% earlier. Seven EU member states made a renewed push for a more effective cap on gas prices, according to a document seen by Bloomberg News. The decline erased gains spurred by forecasts that temperatures across the region are set to plummet this month after a relatively mild November.

Europe has been trying to reach consensus on how to ease its energy crisis, which could be worsened with a harsh winter that leaves the market exposed to further supply squeezes. Liquefied natural gas has helped replenish missing Russian pipeline shipments and fill reservoirs, but stockpiles are starting to decline.  

Gas prices are four times higher than normal for this time of year, fueling inflation and hurting economies. With less than two weeks to go before EU energy ministers meet to seek an agreement, countries including Italy, Belgium and Greece are pushing for a tighter price cap that moves with rates set at key international hubs. 

European leaders have been urging consumers to conserve energy in an effort to get through the winter. The continent is also trying to speed the construction of infrastructure to receive more LNG, with Germany expected to have its first import terminals ready this month. But if a cold snap also hits Asia, competition for cargoes could surge, potentially driving up prices. 

“High gas prices have already seen companies and households dial down their consumption considerably, and have enabled Europe to snag a flotilla of liquefied natural gas cargoes, fending off competition from Asia,” Nilushi Karunaratne, an analyst at BloombergNEF said Thursday. “But what shape the region ultimately emerges in come March remains to be seen.”

Demand for gas-fired generation could also get a boost from poor wind conditions. Weather forecasts point to moderate-to-low wind power potential for the UK, continental Europe and the Nordics over the next two weeks.

Dutch front-month futures, the European benchmark, dropped to €139.26 per megawatt-hour after two days of gains. The UK equivalent contract also declined, losing 6.9%.

Dutch gas may range between €100 and €200 next year, and there is still “upside” for the contract, Francisco Blanch, head of commodities research at Bank of America Corp., said Thursday. “2023 LNG balances look very tight, and continued EU consumer and corporate demand subsidies are supportive of prices.”

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Earlier:

EUROPEAN GAS PRICES UPDOWN AGAIN
2022, November, 30, 11:45:00
EUROPEAN GAS PRICES UP ANEW
With Russia cutting most of its gas supplies to Europe in the fallout over Moscow’s war in Ukraine, the continent is set to delve further into its stockpiles that it has spent months accumulating.
EUROPEAN GAS PRICES UPDOWN AGAIN
2022, November, 30, 11:40:00
EUROPEAN GAS LIMITS
The EU aims to end its reliance on Russian fossil fuels by 2027. For now, Moscow’s move to halt supplies through the main Nord Stream 1 pipeline has led the bloc to increase shipments of Russian seaborne gas by around 50 per cent.
EUROPEAN GAS PRICES UPDOWN AGAIN
2022, November, 30, 11:35:00
EUROPEAN ENERGY NEED FUNDS
The European Union needs additional funds to decouple from Russian gas and shield companies and households from the current energy crisis,
EUROPEAN GAS PRICES UPDOWN AGAIN
2022, November, 30, 11:30:00
EUROPEAN LNG WILL UP
Since Russia’s full-scale invasion of Ukraine in February 2022 and the reduction in natural gas pipeline imports from Russia that followed, European countries have reactivated development of previously dormant regasification projects and have started development of new projects.
EUROPEAN GAS PRICES UPDOWN AGAIN
2022, November, 28, 10:15:00
EUROPEAN GAS PRICE CAP
The 27 EU member states are trying to hammer out an agreement that can be implemented by the end of the year. The commission on Tuesday proposed to limit the price of the upcoming contract on the TTF market. TTF accounts for around four-fifths of gas trading in the bloc.
EUROPEAN GAS PRICES UPDOWN AGAIN
2022, November, 18, 11:20:00
EUROPEAN GAS PRICES UPDOWN
Meanwhile, the European Union is continuing talks about ways to limit spikes in gas prices ahead of a meeting of energy ministers next week.
EUROPEAN GAS PRICES UPDOWN AGAIN
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.
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Tags: EUROPE, GAS, PRICE, RUSSIA, SANCTIONS