Gas prices fall on stable supply and mild temperatures
UNG•Dutch and British front-month gas prices edged lower as stable supply and mild European weather curbed heating demand. European gas storage was 71.5% full, while Norwegian exports rose by 9 million cubic metres per day to 330 million.
1. Prices edge lower
Dutch and British front-month gas prices fell on Friday morning as stable supply and mild European weather curbed gas demand. The Dutch contract was down €2.083 at €71.855 per megawatt hour, while the British contract fell 5.68 pence to 180.85 pence per therm.
2. Supply and storage
Norwegian gas exports rose by 9 million cubic metres per day to 330 million, and northwest European LNG terminal output was 2,296 gigawatt hours per day. European gas storage sites were 71.5% full, below usual levels for this time of year.
3. Middle East risks
Prices could move on news surrounding the Middle East conflict. A report on Thursday said the US was sending more troops and carriers to the region; the conflict has curbed shipping through the Strait of Hormuz, which typically carries roughly a fifth of the world's oil and LNG.
