2023-01-16 12:50:00
EUROPEAN GAS PRICES DOWN DEEPER
BLOOMBERG - Jan 16, 2023 - Natural gas prices in Europe dropped to the lowest level since September 2021 as the supply outlook got a boost with full stockpiles in China forcing buyers to send LNG cargoes to the continent.
Benchmark futures fell as much as 9% on Monday, taking the decline this year to 22%. Chinese importers are trying to divert February and March shipments to Europe amid weak prices at home and high inventories. It’s easing concerns among many in the market that the reopening of the country’s economy will boost demand and pull cargoes away from the west.
Gas markets are calming this year after a tumultuous 2021 when energy prices surged to records and hammered economies everywhere. Some optimism has emerged in Europe that the worst could be over as inflation starts to ease and fears of a recession recede.
The prolonged spell of mild weather has been a major contributor. While a cold snap is expected this week, it’s likely to be brief and and won’t be strong enough to dent gas inventories that have barely been touched over the last month as demand remains in check while LNG imports are strong.
“There currently appears to be no end to the losses on the European gas market,” Energi Danmark said in a note on the website. “The panic-like situation from last year has been replaced by confidence that Europe will get through this winter without any supply issues.”
Still, some are warning that the crisis that was triggered by Russia’s deep supply cuts following the invasion of Ukraine is far from over. Europe has been “lucky” with the weather, and supply remains exposed to geopolitical events, Iberdrola SA’s Chairman Ignacio Sanchez Galan said. Gas prices may have dropped, but are still almost double their five-year average for the time of year.
For now, the gas market is getting a helping hand from elsewhere too. Renewables are contributing to less use of gas in electricity in Europe, with Germany producing a unprecedented amount of wind power on Saturday while Britain also reached a record last week.
Dutch front-month gas futures, Europe’s benchmark, slipped 8.2% to €59.50 a megawatt-hour at 10:30 a.m. in Amsterdam. They fell for a fifth straight week on Friday. The UK equivalent contract was 7.4% lower on Monday.
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Earlier:
2023, January, 11, 11:35:00
EUROPEAN LNG WINNING
LNG deliveries to Europe have helped ease an energy crisis this winter after Russian piped supply slumped.
2023, January, 9, 12:30:00
EUROPEAN GAS PRICES UPDOWN ANEW
Dutch front-month futures, the European benchmark, rose 4.3% to €72.50 a megawatt-hour at 8:55 a.m. in Amsterdam. The UK equivalent contract was 7.1% higher.
2023, January, 5, 16:25:00
EUROPEAN GAS PRICES UPDOWN YET
Dutch front-month futures, the European gas benchmark traded 2% higher at to €66.30 per megawatt-hour by 12 p.m. in Amsterdam. The UK equivalent contract also rose. German power for next month increased 2.3% to €166 per megawatt-hour.
2022, December, 21, 12:20:00
EUROPEAN GAS PRICE CAP
"The TTF month-ahead settlement price for derivatives is by far the most widely used benchmark in gas supply contracts across the EU, followed by maturities of two-month ahead and year ahead," it states.
2022, December, 13, 13:50:00
EUROPE NEED MORE GAS
Despite Russia slashing gas deliveries this year, Europe has averted a severe shortage and started the winter with brimming gas storage tanks
2022, December, 13, 13:45:00
EUROPEAN GAS DEADLOCK
Countries led by Germany, the Netherlands and Denmark are calling for a cautious approach, while a group including Belgium, Italy, Greece and Poland is pushing for a more aggressive tool to contain gas prices.
2022, November, 25, 10:50:00
EUROPEAN ENERGY PACKAGE
Failure to reach a deal would send a signal that the EU’s united response to the war-driven energy crisis is falling apart -- a political gift for Moscow that Europe is keen to avoid.
