JJETF - Supply Risks Keep Gas Market On Tenterhooks
2024-06-24 12:15:00 ET
Summary
- Fundamentals for the European natural gas market remain relatively bearish.
- However, persistent supply disruptions and risks continue to see speculative money flowing into TTF.
- Strong Asian demand and support from a rally in Henry Hub have only provided further support.
By Warren Patterson
EU storage building at slower pace
EU gas storage remains comfortable at 75% full, which is well ahead of the five-year average of 65%. The pace of net injections over May and so far in June are below levels seen during the same period last year. However, with net injections averaging 250mcm/day from the start of May through until 18 June, the EU is still on track to hit full storage ahead of 1 November, assuming net injections remain around similar levels. However, injection levels are going to largely depend on LNG imports, which have been under pressure, and on how Russian pipeline flows evolve through the summer, considering the risks that continue to hang over this supply....
Supply Risks Keep Gas Market On Tenterhooks