Gas Prices Stronger On Cooling Needs Ex Europe

European natural gas prices fell on Wednesday whereas they rose in both the US and Asia. Europe fell 0.7% to EUR 29.48 after a high of EUR 30.57 to be up only 1.2% this month. It has been range trading on elevated storage levels and high renewable power production. The region remains concerned about disruptions to supply coming through Ukraine.

• Ukraine’s military intelligence chief Budanov said that Russia is positioning “small groups of forces in the border area” near Sudzha on the Russian side. This is the interconnection point through which Russian gas goes to Ukraine destined for Europe, according to Bloomberg. The deal to allow Russian flows through Ukraine expires at the end of the year.
• US natural gas continued climbing higher and rose 2.6% on Wednesday to $2.41 to be up over 20% in May to date. The market is preparing for increased cooling demand. EIA inventory data is released later today. Bloomberg is reporting that US producers have stuck to their output cuts and Q2 and Q3 supply is likely to be lower.
• North Asian prices rose 2.2% to be up 6.1% this month as buyers prepare for increased power usage for cooling as temperatures in the region are expected to rise above 10-year averages.