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LNG: European Supply Risks Still At The Fore

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Natural gas prices were moderately higher on Tuesday but are still down in December to date. European gas rose 1.8% to EUR 45.67, close to the intraday high of EUR 45.87, as purchasers took advantage of lower prices. They were also supported by unplanned outages in key supplier Norway. It is still down 4.5% this month.

  • The weather outlook has become milder but wind-generated power is forecast to decline over the week. But the European supply situation remains uncertain going into year end when the deal with Ukraine to allow Russian flows expires, also the impact on EU transactions of US sanctions on Gazprombank is unclear.
  • US natural gas prices rose 0.2% to $3.19 to be down 5.2% in December. Supplies remain ample and warmer weather is forecast for parts of the East Coast of the US for mid-December, according to the Commodity Weather Group.
  • Softer gas demand in China due to weaker industrial growth and higher global prices have meant that it is reselling LNG, according to ENN Group. Also Japan has restarted some nuclear reactors which should reduce its gas demand.
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Natural gas prices were moderately higher on Tuesday but are still down in December to date. European gas rose 1.8% to EUR 45.67, close to the intraday high of EUR 45.87, as purchasers took advantage of lower prices. They were also supported by unplanned outages in key supplier Norway. It is still down 4.5% this month.

  • The weather outlook has become milder but wind-generated power is forecast to decline over the week. But the European supply situation remains uncertain going into year end when the deal with Ukraine to allow Russian flows expires, also the impact on EU transactions of US sanctions on Gazprombank is unclear.
  • US natural gas prices rose 0.2% to $3.19 to be down 5.2% in December. Supplies remain ample and warmer weather is forecast for parts of the East Coast of the US for mid-December, according to the Commodity Weather Group.
  • Softer gas demand in China due to weaker industrial growth and higher global prices have meant that it is reselling LNG, according to ENN Group. Also Japan has restarted some nuclear reactors which should reduce its gas demand.