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Gas Prices Rise As Buyers Bargain Hunting & Some Supply Disruption


European LNG prices rose again up 4.8% on Friday to EUR 27.30 to be up 3.4% over the week and almost 10% on the month. Low prices and higher carbon permit costs have encouraged buyers into the market with Asians and Europeans competing for the fuel. Weather-driven disruptions to Australia’s north western LNG facilities have also resulted in upward pressure on prices.

  • The EU energy commissioner Simson has said that the group needs to reduce imports of Russian LNG this year and that it requires confidence in supplies from the US. EU members will soon be able to block Russian and Belarusian exporters from reserving gas infrastructure. While pipeline flows have fallen sharply, LNG shipments have increased. Flows through Ukraine, which supply Austria, Slovakia and Hungary, are likely to end this year, but Simson said that the EU is prepared.
  • US natural gas prices fell 4.4% on Friday to $1.70 to be down 7.8% last week and -10.5% in March. Data showing inventories around 40% above the 5-year average weighed on US prices. Also the weather is looking slightly warmer in the eastern US towards the end of March, according to Maxar.
  • North Asian gas prices rose 3.5% on Friday to be up 10.3% this month, as buyers take advantage of low prices.

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