European Natural Gas Prices Slump as Lower Demand Offsets Supply Risks
01.15.2024 By Tank Terminals - NEWS

January 15, 2024 [Oil Price]- Europe’s benchmark natural gas prices dipped on Monday morning in Amsterdam by 4.8% amid weak industrial demand and bigger-than-average stockpiles for this time of year, despite a prolonged cold snap in northwestern Europe and signs that Qatar may have paused at least five LNG tankers in and around the Red Sea.

 

The front-month February Dutch TTF Natural Gas Futures, the benchmark for Europe’s gas trading, had slid by 4.82% at $33.35 (30.45 euros) per megawatt-hour (MWh) as of 9:47 a.m. in Amsterdam on Monday.

The prices have largely ignored the deep freeze of the past week in most of Europe as traders believe the market is well supplied to finish this winter season – which we are now halfway through – with sufficient natural gas in storage sites.

Gas withdrawals across Europe have accelerated in the past 10 days, but storage in the EU is still nearly 80% full, according to data from Gas Infrastructure Europe.

As of January 13, EU gas storage sites were 79.7% full, the data showed. Last week’s below-average freezing temperatures saw the biggest withdrawals in a week so far this winter season.

“However, storage remains above the 5-year average of 68% full for this time of year,” ING strategists Warren Patterson and Ewa Manthey wrote in a note on Monday.

“For now, we are still assuming that European storage will finish this heating season at around 52% full, which suggests limited upside for European gas prices,” the analysts added.

High level of inventories, weak demand from industry, and increased confidence that Europe could go through the winter without major supply disruptions have all led to traders becoming more bearish on Europe’s natural gas prices. That’s despite the cold weather and ship-tracking data reported by Bloomberg on Monday that Qatar looks to have paused LNG cargo shipments via the Bab el-Mandeb Strait to the Red Sea/Suez Canal route.

 

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

FERC to Decide on Venture Global Building Permit Extension by April
02.23.2024 - NEWS
February 23, 2024 [Oil Price]- The Federal Energy Regulatory Commission will try to be quick in d... Read More
Shell's LNG Trading Makes $2.4 Billion in Final 2023 Quarter, Sources Say
02.23.2024 - NEWS
February 23, 2024 [Reuters]- Nearly a third of Shell’s (SHEL.L), opens new tab profit in th... Read More
Europe, Africa Oil Markets Tighten, Lending Support to Futures
02.23.2024 - NEWS
February 23, 2024 [Reuters]- Red Sea shipping delays and OPEC+ supply cuts are tightening physica... Read More
Concluded Joint Development Agreement for Production of Sustainable Aviation Fuel (SAF) from Woody Biomass in the US
02.23.2024 - NEWS
February 23, 2024 [Sumitomo Corporation]- Sumitomo Corporation, through Sumitomo Corporation of A... Read More