• 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
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs

European Natural Gas Prices Fall On Weak Global Demand

Benchmark natural gas prices in Europe fell early on Wednesday as global demand for LNG is subdued, European inventories are higher than usual, and renewable energy output has increased in recent days.

The front-month futures at the TTF hub, the benchmark for Europe’s gas trading, are trading at around $26.70 (25 euros) per megawatt-hour (MWh), their lowest level in two years. Prices have dropped by as much as 65% since the start of this year and by 90% since the August 2022 record-high of over $320 (300 euros) per MWh.

Weak demand from the industry and from power generators teamed up with the highest gas inventories for this time of the year in years to send the benchmark prices falling since the milder-than-usual winter ended.

As of May 29, natural gas storage sites in the EU were 68.37% full, according to data from Gas Infrastructure Europe. The level of gas in storage is the highest for this time of the year in at least a decade.

At the same time, Germany has generated record solar power in recent days. 

Last week, Europe’s benchmark price registered their eighth consecutive week of losses, the longest weekly losing streak since 2013.

Demand in China is also weak and is expected to be weak in the near term, with economic data pointing to stunted recovery after the reopening.

China’s purchasing managers’ index (PMI) declined in May to a five-month

low of 48.8, pointing to a sharper-than-expected contraction in factory activity. 

The weaker Chinese data weighed on the outlook for natural gas demand in China, and on gas prices worldwide, analysts said.

ADVERTISEMENT

“Most recently the China manufacturing data pointing to weakness and, with that, potentially weaker competition for LNG,” Ole Hansen, head of commodities strategy at Saxo Bank, told Bloomberg on Wednesday.

Asian spot LNG prices also fell last week, for a fifth straight week, amid weak demand and comfortable inventories.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • George Doolittle on May 31 2023 said:
    Just another example of #hyperinflation no different from Russia, Turkey, Canada, Japan, China, Australia...even Great Britain

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