Gas Prices Lower As Flows And Storage Ample

European LNG prices fell 2.7% on Wednesday to EUR 32.69, close to the intraday low of EUR 32.62. Gas has had a weak start to July as markets are reassured that supply is plentiful, especially given storage levels are elevated. Renewables have been contributing to European power generation and flows from Norway have been uninterrupted.

• Ukraine’s agreement with Russia to allow the transit of pipeline gas flows to the EU expires at the end of this year, but they won’t discuss an extension with Russia. As a result, an alternative with Azerbaijan is currently being explored.
• US natural gas prices are down 0.3% to $2.43 after a high of $2.48. Forecasts continue to point to cooler weather through to mid-July.
• The EIA reported a 32bcf increase in US gas storage for last week, slightly higher than expected and below the 5-year average of +69bcf. This news provided some price support.
• Hurricane Beryl is currently expected to possibly impact around 90mn cubic feet per day of federal offshore gas production, according to the National Hurricane Center and Ocean Energy Management data.
• North Asian prices fell 3.4% yesterday as supply looks assured.