Benchmark natural gas prices in the European market continue to fall as unusually warm weather destroys demand for gas, which has already weighed on the industrial sector’s appetite, Bloomberg reported on Tuesday, citing Agerpres.
The November gas contract fell 5.4% on Tuesday morning, to the lowest level since November 2022. In general, over the past three trading sessions, natural gas quotes have fallen by more than 10%.
Temperatures in Western Europe will top 20C over the weekend and remain above normal until at least the middle of this month, according to forecasting firm Maxar Technologies. This will delay the start of the coolant supply season, after a warm September.
In parallel, filling of gas deposits continues and, according to Gas Infrastructure Europe, the degree of filling of deposits in the region is on average 96%.
- Read also: Warm weather and full reserves: the price of natural gas is falling in Europe
As for gas consumption in the European Union and Great Britain, it was 9% lower in September this year compared to last September, according to Tom Marcek-Manser, director of analysis at ICIS. In addition, this is 20% less than the average figure for September 2017-2021.
In Germany, gas demand from the commercial and residential sectors last month was almost half of what it was in September 2022, Tom Marzek-Manser said, adding that the modest increase in gas demand recorded in August from the industrial sector had completely disappeared in September.
Natural gas futures for November delivery fell 3.6% to 37.92 euros per megawatt-hour at around 9:29 a.m. at the TTF gas hub in Amsterdam, where European benchmark prices are set.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.