Gas Prices Continue Decline As Weather Mild & Heating Season Approaches End

European LNG prices fell again on Monday down 5% to now be 22% lower in February to date as the heating season approaches its end with storage levels above seasonal averages and the rest of February looking mild. Attention is now focussing on refilling through the spring and summer.

• European storage was 65% full on February 17 compared with the 5-year average for this time of year at 49%. Gas flows to the UK and Northwest Europe from Norway are around 2.5% higher than the 5-day moving average. UK gas demand is 21% below the 5-year seasonal average.
• Qatar has said that attacks in the Red Sea will delay deliveries but not impact output. Most of its shipments head towards Asia. The energy producer announced it has more contracts with Europe and Asia. It is also looking for partners in expanding its capacity.
• US natural gas prices fell 3% on Monday and are now down almost 26% in February as supplies remain robust and demand has been softer than usual due to a mild winter.
• Asian LNG prices remain weak to be down around 30% this month. Demand is likely to remain soft through the year with nuclear power restarted and increased coal use.