Europe gas prices rise on Asian LNG increase and low storage inventories
UNG•Dutch and British front-month gas prices rose as Asian LNG prices increased and concerns over limited supply and low storage outweighed rising Norwegian imports and stronger wind generation. European storage was 72.83% full.
1. Gas benchmarks rise
The Dutch front-month contract rose €1.30 to €77.00 per megawatt hour, while the British front-month contract gained 1.94 pence to 190.51 pence per therm by 0820 GMT.
2. Supply and demand factors
Norwegian imports may increase as maintenance ends, while gas demand for power is forecast to fall by 177 gigawatt hours per day as wind generation rises. Gas demand for heating was 90 gigawatt hours per day higher as temperatures cooled.
3. Storage and shipping risks
European gas storage sites were 72.83% full, below historical levels for this time of year. Flows from the Persian Gulf had picked up slightly in recent weeks, while risks were highlighted by reports that a Greek-owned LNG tanker was hit by an unidentified object near the Strait of Hormuz.
