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EU Industrial Demand Showing Signs of Recovery: JP Morgan

NATURAL GAS

Industrial demand for natural gas in NW Europe has started to show signs of recovery although from very depressed levels seen last year according to JP Morgan.

  • Industrial demand increased about 9% in Oct-Dec yoy and by about 15% yoy in January.
  • Colder weather explains about 40% of the demand increase in January with industrial demand in Jan-24 up 26mcm/d from Jan-23.
  • The remaining demand increase may have been mostly price-related and is likely to remain in place given the TTF price forecast.
  • The Q4 23 earning season suggested a change in tone with a less negative messaging regarding European industrial demand than the previous earnings season.

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