European gas prices dip with steady supply outlook
In the European energy market, natural gas prices showed a decline in early trading, influenced by expectations that gas supply would remain consistent through the end of the year. The benchmark Dutch TTF saw a 2.2% decrease, bringing the price to 45.46 euros per megawatt hour.
This drop comes after the price recently peaked at yearly highs of 49 euros per megawatt hour.
Despite this decrease, there is an anticipation of increased heating demand due to colder weather predicted for January, which could lead to a higher rate of gas storage withdrawals. As of Saturday, the European Union’s gas storage levels were reported to be 82.38% full by Gas Infrastructure Europe.
In response to concerns over potential supply shortages during the winter months, Europe has adjusted its gas inventory requirements. The mandated level for gas inventories has been raised to 50% by February 1, which is an increase from the previous 45% target set for this year.
Analysts from ANZ Research have noted the importance of robust liquefied natural gas (LNG) imports continuing until January.
This strategy is seen as necessary to offset the anticipated absence of Russian gas supply starting in January and to meet the winter’s demand for heating.
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