European Natural Gas Rebounds
European natural gas prices rose to €87/MWh on Wednesday, moving back near a multi-year high after sliding more than 3% in the previous session as traders weighed mixed reports on efforts to end the Middle East war. Tuesday’s decline came after unconfirmed reports that Qatar and Pakistan had submitted a new proposal aimed at reviving talks to end the conflict. However, a diplomat involved in the negotiations said reports of an imminent agreement were incorrect. European gas prices remain more than double their pre-conflict levels amid ongoing disruptions to LNG supplies from the Persian Gulf and unusually low inventories. As of October 20, European storage facilities were 74.62% full, the lowest seasonal level since records began in 2009. The situation is particularly concerning in Germany, Europe’s largest economy, with storage levels just above 61%. Strong LNG demand from Asia also increases the risk of more intense competition for cargoes when colder weather arrives.
European natural gas prices rose to €87/MWh on Wednesday, moving back near a multi-year high after sliding more than 3% in the previous session as traders weighed mixed reports on efforts to end the Middle East war. Tuesday’s decline came after unconfirmed reports that Qatar and Pakistan had submitted a new proposal aimed at reviving talks to end the conflict. However, a diplomat involved in the negotiations said reports of an imminent agreement were incorrect. European gas prices remain more than double their pre-conflict levels amid ongoing disruptions to LNG supplies from the Persian Gulf and unusually low inventories.
As of October 20, European storage facilities were 74.62% full, the lowest seasonal level since records began in 2009. The situation is particularly concerning in Germany, Europe’s largest economy, with storage levels just above 61%. Strong LNG demand from Asia also increases the risk of more intense competition for cargoes when colder weather arrives.