Gas prices in Europe fluctuate amid market assessment of supply changes and weather
Kyiv • UNN
European gas prices are stable, around €42 per megawatt-hour, as traders assess supply changes and the impact of a cool spring. Europe is replenishing storage after winter, requiring more fuel.
European natural gas prices remained around 42 euros per megawatt-hour, amid traders weighing changes in fuel supply in the region and the impact of a cool start to spring, Bloomberg reports, writes UNN.
Details
On Wednesday, benchmark futures fluctuated between small gains and losses after rising for the previous two sessions.
Europe is embarking on the difficult task of replenishing its storage facilities, which are only a third full after a cold winter. Although some headwinds have recently begun to weaken - with the seasonal spread for gas contracts narrowing - Europe still needs to purchase more fuel than last year after the end of Russian gas transit through Ukraine, the publication writes.
Slightly cooler weather in early April may increase residual heating demand. However, renewable generation in countries such as Germany is expected to "increase significantly," according to a note from Engie SA's EnergyScan, potentially limiting gas needs.
As for supplies, annual maintenance has begun at some of Norway's largest facilities, reducing flows from a key supplier.
The region will have to rely more on volatile flows of liquefied natural gas from around the world this summer and pay to "lure" cargoes that might otherwise go to Asia and other regions, the publication notes.
Currently, a large amount of LNG is arriving in Europe, which, as indicated, helps to limit price increases.
Dutch futures for the near month, the European gas benchmark, fell 0.8% to 42.09 euros per megawatt-hour at 10:20 a.m. in Amsterdam.
