“Gas prices in Europe remain around 42 euros: what affects the marketEuropean gas prices are stable, around 42 euros per megawatt-hour, as traders assess changes in supply and the impact of a cool spring. Europe is replenishing storage after winter, requiring more fuel.”, — write: unn.ua
DetailsOn 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 on gas contracts narrowing – Europe still needs to buy 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 liquefied natural gas flows from around the world this summer and pay to “lure” cargoes that might otherwise go to Asia and other regions, the publication notes.
Currently, large quantities of LNG are arriving in Europe, which, as indicated, helps to limit price increases.
Dutch front-month futures, the European gas benchmark, fell 0.8% to 42.09 euros per megawatt-hour at 10:20 am in Amsterdam.
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