EUROPE GAS prices hit an all-time high amid cold weather and supply concerns
Dutch and British wholesale prices for gas hit an intraday record on Thursday, amid concerns about the Russian storage and supply inventories falling below last year's levels and a forecast of cold weather.
LSEG data show that the benchmark front-month contract for the Dutch TTF hub had risen 0.86 euros to 47.67 euros a megawatt hour at 1012 GMT. This was a new intraday high.
The British day-ahead contract increased 2.15 pence, to 119.25 pence per thermo, the highest intraday levels since November 2023.
Analysts at Engie’s EnergyScan stated in a morning report that "concerns about EU gas stock... and Russian supplies continue to fuel the upward trend." They added that European gas inventories were 89.87% filled compared to last year's 98.87%.
Prices are still lower than their record intraday highs of 306 euro/MWh, which they reached in August 2022 after the Russian invasion of Ukraine.
The EU government was under pressure in 2021 to reduce energy prices after Russia invaded Ukraine.
LSEG data indicates that the demand for heating in Northwest Europe will increase by 279 gigawatt-hours per day to 4,950 GWh/d due to falling temperatures.
The longer-term trend is bullish. "We expect another day of sideways bullish trading," said LSEG Analyst Saku Jussila
Gazprom, the gas giant controlled by the Kremlin, said that despite a dispute with Austrian company OMV over a contract, Russia's gas exports to Europe via Ukraine were stable on Thursday.
Gazprom announced that it will send the same amount of gas via Ukraine to Europe as it has been doing every day since November 12.
U.S. Natural Gas Futures rose about 7% to a 10-month-high on Wednesday, on forecasts of colder weather in the next two week than originally expected.
This should prompt utilities to begin pulling gas from storage in order to meet the rising demand for heating around Thanksgiving Day next week. In early trading on Thursday, they rose another 5%.
The European gains helped to drive Asian LNG prices up despite a weak demand. Japan Korea Marker, the Asian benchmark, is currently trading at $14.60/mmBtu.
The benchmark contract on the European carbon markets increased by 0.82 euros, to 69.23 euro per metric ton.
(source: Reuters)
