European Prices Continue Falling As Supply Remains Robust

European LNG prices fell another 5% to EUR 38.10 on Tuesday to be down 9.5% already in December reflecting a lack of concern over winter heating supplies as stocks remain around 94% of capacity. The focus is now shifting to spring 2024. They cleared EUR 40 early in the session and made an intraday low of EUR 37.92.

• The drought-impacted Panama Canal is reducing US LNG shipments through the waterway and they are being redirected to Europe increasing supply there.
• US natural gas prices stabilised on Tuesday after falling sharply through November. Forecasts are projecting some cooler weather next week. The market is also looking to the COP28 for plans to end US coal power sooner which would increase gas-fired power production, according to Tradition Energy.
• North Asian prices were little changed and are down only 0.5% in December, as demand remains muted.