Europe gas prices rise on lower Norwegian flows
UNG•European wholesale gas prices rose as Norwegian exports fell 2 million cubic meters per day to 332 million, while milder weather and softer demand limited gains. EU gas storage was 72% full, compared with 82.55% a year earlier.
1. Prices and flows
Benchmark Dutch front-month gas rose €2.30 to €87.03 per megawatt hour by 0925 GMT on Wednesday. The British front-month contract gained 5.71 pence to 217.00 pence per therm. Norwegian exports fell 2 million cubic meters per day from Tuesday to 332 million, with flows to continental Europe also down 2 million to 215 million cubic meters per day.
2. Weather and storage
Residential heating demand was forecast to rise by 97 gigawatt hours per day to 2,963 GWh/d on the day ahead. Average temperatures across north-west Europe were forecast at 7.5 degrees Celsius on Wednesday and Thursday. Stronger forecast wind speeds could reduce gas demand for power, while storage stood at 72% full, down from 82.55% a year earlier. A Middle East LNG disruption has left European inventories significantly depleted, ANZ strategist Daniel Hynes said.
