Europe gas prices rise on cooler temperature forecast and low storage levels
UNG•Dutch and British front-month gas prices rose as forecasts pointed to cooler temperatures later in October and European gas storage was 72.67% full.
1. Prices rise
The Dutch front-month contract rose €2.687 to €76.20 per megawatt hour by 0818 GMT. The British front-month contract gained 6.87 pence to 190.46 pence per therm.
2. Weather and supplies
Forecasts for northwestern Europe were revised lower for the second half of October, to around 0.3 degrees above the 10-year average. Analysts said low storage levels could become more concerning if colder conditions lift demand; Europe’s storage was 72.67% full, its lowest level in at least 15 years.
3. LNG exports remain low
Some Qatari LNG cargoes reappeared outside the Strait of Hormuz over the weekend, but regional exports remained low. Norwegian gas exports rose by 8 million cubic metres per day to 332 mcm/d, while output from northwest European LNG terminals was little changed at 2,178 gigawatt hours per day.
