EU Gas Prices Unlikely to Fall Further Amid Rising Demand: SEB

European gas prices are unlikely to decline much further as lower prices incentivise higher demand and weigh on LNG imports, Sweden’s SEB bank said.

• “Demand reduction and elevated LNG imports are currently overcompensating versus running losses in natural gas supply from Russia,” it said.
• This may drive TTF prices lower for some more time but because of lower prices demand is likely to rise and LNG imports would fall as a result.
• “If energy-intensive industry decides to restart at current prices, then they will likely lock in prices at around EUR 60/MWh for the coming year as well, thus making their natural gas demand less sensitive to price spikes down the road.”
• TTF MAR 23 down -0.3% at 59.35€/MWh