Demand Weak But Prices Appear To Have Troughed

European LNG prices rose 2.3% on Tuesday to EUR 24.55, as lower prices have encouraged interest in the market but demand remains weak. While it is still down almost 19% this month, it appeared to reach a low of EUR 22.32 on February 23. With the end of the heating season at the end of March, focus is now on the spring/summer refilling.

• European storage is at 64% full and is predicted to be around 58% by the end of March and then 90% by September, according to Kpler. The research firm expects European gas demand to rise 2% this year as low prices drive an increase in industrial usage.
• The April US natural gas contract rose 4.3% to $1.82 but is 14.2% lower in February. It appeared to reach a low of $1.60 on February 18. Maxar is forecasting temperatures to be higher than average through to March 12.
• Asian prices were steady but are headed for a 16% drop this month. Buyers are looking to see if European prices fall further before entering the market, according to Bloomberg.
• Australia’s largest LNG exporter Woodside is forecasting usage to rise 50% over the next decade, especially in Asia. It is looking to invest as a result.