Gas Prices Set To Finish July Lower On Ample Supply

European LNG prices fell 1.5% to EUR 31.62 on Tuesday to be down 9% in July to date as recent supply issues showed signs of easing, in addition storage is seasonally high at almost 83%. Demand has remained subdued with a mild summer in northern Europe, weak industrial production and increased renewable power generation.

• Texas’ LNG facility, an important global provider, has restarted production after having to pause due to damage from Hurricane Beryl. Norwegian extended maintenance continues and will be monitored for any further delays.
• US natural gas unwound most of Monday’s gains falling 4.7% to $2.15 to be down 17.5% this month. The weakness has been driven by excess supply outweighing forecasts for warmer weather going into August.
• North Asian prices fell 1% to be down 4.2% in July, less than in other regions as demand remains robust, especially from India given hot weather.