European gas contracts open lower but hold near four-year highs
UNG•Dutch and British wholesale gas contracts opened lower but remained at their highest levels since December 2022. European storage was 74.02% full as shipping risks and rising Chinese LNG purchases heightened competition for cargoes.
1. Prices ease at open
The Dutch front-month gas contract fell €1.49 to €85.65 per megawatt hour by 0754 GMT, while the British front-month contract dropped 3.43 pence to 212.58 pence per therm. Both remained near their highest levels since December 2022.
2. Supply competition persists
Softer European demand forecasts and warmer weather forecasts for the first half of November pressured prices. But attacks near the Strait of Hormuz continued to raise shipping concerns, and China was stepping up LNG purchases ahead of winter, increasing competition for cargoes.
3. Storage and exports
European gas storage sites were 74.02% full, below historical levels for this time of year. Norwegian gas exports were nominated at 330.7 million cubic metres per day, down from 334.2 million on Wednesday.
