Gas Markets Still Bearish With Low Demand and Healthy Supplies

Gas prices still trending lower with subdued demand and healthy storage in both Europe and Asia.

Low start of season storage injections with high starting inventories have combined with structural demand losses and high LNG flows to keep bearish pressure on European gas markets.

• No significant increase in cooling power demand has yet been seen from South Korea and Japan despite slightly above-average temperature forecasts due to healthy LNG stocks and more nuclear generation this summer.
• Nuclear generation in Japan could be slightly lower than expected after Kansai Electric today announced a delayed restart of the Takahama nuclear reactors.
• Spot LNG prices could spike again if severe weather strikes this winter with import capacity in Europe rising and China potentially increasing demand according to Jera CEO Yukio Kani.
  • TTF JUN 23 down -2.6% at 37.83€/MWh
  • JKM Jun 23 unchanged at 11.55$/mmbtu
  • JKM-TTF Jun 23 up +0.2$/mmbtu at -0.79$/mmbtu
  • US Natgas JUN 23 down -3.9% at 2.23$/mmbtu