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Free AccessEuropean Gas Prices Could Fall as Low as 21 €/MWh in Summer
European gas prices could fall as low as $6.70/MMBtu or 20.90 €/MWh, according to Montel, citing Wood Mac.
- Driving down prices is the continuation of high storage levels, although the trajectory of Russian flows will affect market balances.
- Gas storage is not expected to drop below 55% before the market moves to net injections. This could put storage at 89% by July.
- This would put storage in touching distance of the 90% target level well before the Nov. 1 deadline.
- The result could be a supply overhang of up to 10 bcm.
- European demand is expected to rise by 9bcm on the year in 2024, with industrial demand seen rising by 5.5 bcm. Gas for power generation will likely fall by 9bcm.
- A full curtailment of Russian flows could limit the storage capabilities of the EU in 2025, adding some support to prices.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.