JJETF - Europe Exits Winter With Record Gas Storage
2024-04-05 06:30:00 ET
Summary
- European gas prices are likely to remain under pressure, with the region having exited the 2023/24 heating season with record storage.
- Despite a comfortable US market, we expect the US natural gas balance to tighten with flat supply growth and stronger demand.
- In terms of regional spreads, the US market is set to tighten while Europe is looking increasingly comfortable, and we would also expect to see a narrowing in the TTF-Henry Hub spread.
European gas storage more comfortable than expected
The 2023/24 northern hemisphere heating season has officially come to an end. Europe has managed to get through the winter months with very comfortable storage levels. In fact, with storage 58% full at the end of March, the region has exited the heating season with record high storage levels. Milder-than-usual weather through much of February and large parts of March has meant that the drawdown in storage has been somewhat less than expected....
Europe Exits Winter With Record Gas Storage