2023-05-03 12:56:58 ET
European natural gas benchmark futures fell as much as 3% Wednesday to below €37/MWh for the first time since July 2021 , as the continent recovers from the historic energy crisis stemming from Russia's invasion of Ukraine.
A relatively mild winter, lower demand and record imports of liquefied natural gas have combined to ease price volatility as Europe builds stockpiles for the next heating season.
Western Europe LNG imports surged to a record 10.6M metric tons in April, with roughly half coming from the U.S., according to data compiled by Bloomberg.
Europe's gas inventories have been rising steadily and are now ~60% full on average - well above normal for this time of year - and the head-start could mean the continent refills its stockpiles before the heating season begins later this year.
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Some analysts worry the gas crunch still could return next winter, particularly if cold weather arrives early or as demand from industry picks up.
While European futures have plunged from last year's record levels, they remain historically high and far higher than U.S. prices, which currently are barely above $2/MMBtu .
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European gas extends slide to 21-month low as LNG imports rise to record