European LNG Holds Above EUR 50

European gas prices rose 0.5% to EUR 50.40 on Friday trading mainly above EUR 50 with only a couple of brief breaks below this level with the intraday low of EUR 49.27. They reached a high of EUR 53.25 very early in the session. They fell 6.6% over the week on the resolution of an industrial dispute in Australia but are still over 20% in October to date due to the escalation of tensions in the Middle East.

• Gas markets remain on edge after the conflict in Gaza led to the closure of Israel’s Tamar gas field which produces flows to Egypt which are shipped to Europe. There is now uncertainty over Russian flows through Bulgaria after the latter introduced a tax. This gas is used in Hungary and Serbia.
• Forecasts of mild weather have been keeping a lid on price movements.
• North Asian LNG price rose 27.1% last week as China’s state owned gas storage facilities were told to fill tanks. There is a chance that increased flows from Russia may be used, according to ANZ.