• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days Does Toyota Know Something That We Don’t?
  • 3 days America should go after China but it should be done in a wise way.
  • 9 days World could get rid of Putin and Russia but nobody is bold enough
  • 11 days China is using Chinese Names of Cities on their Border with Russia.
  • 2 mins Even Shell Agrees with Climate Change!
  • 11 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 12 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 12 days Putin and Xi Bet on the Global South
  • 12 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 12 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
Tom Kool

Tom Kool

Tom majored in International Business at Amsterdam’s Higher School of Economics, he is Oilprice.com's Head of Operations

More Info

Premium Content

European Natural Gas Prices Continue To Drop

  • The front-month futures at the TTF hub, the benchmark for Europe’s gas trading, fell to $40 (36.25 euros) per megawatt-hour (MWh) as of 1:08 p.m. GMT on Monday.
  • Benchmark European natural gas prices hit a 21-month low last week,
  • Spot LNG prices for delivery into north Asia in June have also slumped.

Europe’s benchmark natural gas prices extended losses on Monday and began a sixth week of declines amid comfortable inventories and tepid gas demand in Europe and Asia. 

The front-month futures at the TTF hub, the benchmark for Europe’s gas trading, fell to $40 (36.25 euros) per megawatt-hour (MWh) as of 1:08 p.m. GMT on Monday. Prices have now halved since the beginning of the year after a milder winter, which left European gas inventories at the end of the 2022/2023 heating season well above the five-year average. 

As of May 6, storage sites across the EU were 61.40% full, according to data from Gas Infrastructure Europe.

Spot LNG prices for delivery into north Asia in June have also slumped – to the lowest level in two years, as demand for the refilling of inventories in top buyers China, Japan, and South Korea remains weak.

The spot LNG price for June delivery averaged $11 per million British thermal units (MMBtu) last week, down by 4.3% from the prior week and the lowest spot price since June 2021, according to estimates from industry sources cited by Reuters

Benchmark European natural gas prices hit a 21-month low last week, but Europe is not out of the woods yet for next winter’s supply.

Contrary to initial expectations, the 2022/2023 winter went surprisingly well, but the energy crisis isn’t over, and Europe is not out of the woods yet.

If demand for LNG in Asia, especially in China, picks up with the Chinese reopening, Europe may have to pay up for spot supply to beat competition from the Asian market ahead of next winter.

As fears of a gas crunch did not materialize this past winter, pulling European gas prices down, Europe shouldn’t count on another warmer-than-usual winter and less competition from Asia as it prepares for the 2023/2024 winter.  

By Tom Kool for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News