European Natgas Prices Fall As Stockpiles Increase: ANZ Bank

European natural gas prices have retreated as inventory levels continue to rise, counterbalancing supply concerns, according to ANZ bank in a note Aug. 15.

• Europe’s gas storage facilities are now at 89.45% as demand remained below pre-crisis levels, the bank said.
• Weak economic activity has hampered industrial demand in Germany, although higher temperatures and lower wind output are expected to raise gas demand for power generation.
• North Asian LNG prices have climbed amid concerns of possible strike action in Australia, which would cut off 10% of global supplies and directly impact flows into the region.
• However, Chevron is preparing to bypass unions and put its pay offer to a direct vote of its Gorgon and Wheatstone workforce amid looming industrial action, unions said. At Woodside, workers can already start strike action within seven days’ notice.