UNL - European Gas Rallies Despite Bearish Outlook

2024-05-07 12:25:00 ET

Summary

• European natural gas prices saw a fair amount of volatility in April.
• While the pace of inventory builds has been below normal for the second half of April, we think Europe will hit 100% full storage ahead of the start of the next heating season.
• We still expect TTF to average EUR25/MWh for the remainder of the injection season.

By Warren Patterson

European natural gas injections slow in April

European natural gas prices saw a fair amount of volatility in April. TTF front-month futures traded from a little over EUR25/MWh at the start of April to almost EUR34/MWh mid-month, only to fall back below EUR30/MWh by the end of the month. However, prices yet again rallied in early May. Reduced Norwegian gas flows to Europe, and a late cold spell across large parts of the continent increased heating demand over the second half of April....

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