EUROPE GAS-European gas prices rise on low storage levels and weak LNG flows
Dutch and British gas contract prices rose on Tuesday. Attention was once again focused on the gas storage which is now "half full", the weaker flow of LNG, and the worsening relationship between Europe and the U.S.
LSEG data shows that the benchmark Dutch 'front-month' contract at TTF hub increased by 1.92 euros to 37.10 euros per Megawatt Hour (MWh), which is $12.75/mmBtu at 0908 GMT.
The Dutch day-ahead contracts was up 2,10 euros to 38,00 euros/MWh.
The British day-ahead price of gas was 4.50 pence higher at 97.50 p/therm. Meanwhile, the front-month contract for gas was up by 4.45 pence to 96.20 pence/therm.
Saku Jussila, LSEG analyst, said: "Our?LNG Sendout Outlook is very weak for the remainder of January as two French Terminals, Fos Cavaou and Montoir, have decreased their nominations today by a significant amount."
Prices have rebounded after a sharp fall on Monday due to the threat of new U.S. Tariffs that could stifle European demand and slightly milder predictions.
Daniel Hynes is the chief commodity strategist for ANZ and he highlighted that gas storage was low.
Greg Molnar said that the EU's gas storage sites have now fallen below 50%. This is almost 14 billion cubic meters (bcm), below their five-year average.
Lars Lohmann Rasmussen is the chief analyst of Global Risk Management. He said that although storage withdrawals have not been as strong as they were a week earlier, there are growing concerns about filling up over the summer and autumn.
He added that there was a small risk that the U.S. could use its LNG exports to "weaponize" the EU by cutting deliveries in order to exert pressure over the EU due to the 'conflicts between Greenland, trade and the U.S.
According to the Institute for Energy Economics and Financial Analysis (IEEFA), in 2025 27% of EU gas and LNG imports came from the U.S., up from just 6% in 2020.
The benchmark contract on the European carbon markets was down by 1.08 euros, at 87.06 euro per metric ton. (Reporting and editing by Rashmi aich; Nora Buli)
(source: Reuters)
