Gas prices ease after hitting near four-year highs
UNG•Dutch and British wholesale gas prices fell on Wednesday after reaching their highest levels since December 2022, with milder weather easing demand expectations. European gas storage was 73.94% full, while Middle East shipping attacks and low inventories continued to support prices.
1. Prices retreat from highs
The Dutch front-month contract fell €1.74 to €85.48 per megawatt hour, while the British front-month contract dropped 4.93 pence to 211.90 pence per therm. Both contracts had reached their highest intraday levels since December 23, 2022, over the previous two days.
2. Weather and supply factors
A milder weather forecast points to fewer heating degree days and may help Europe inject gas into storage. Middle East tensions are hampering liquefied natural gas exports, while several tankers carrying Atlantic-sourced LNG have recently diverted toward Europe from Asia. European gas storage was 73.94% full, below historical levels for this time of year.
