Gas Prices Up Moderately As Aussie Strike Action Imminent

European natural gas prices rose 3.5% on Tuesday to finish at EUR34.75. They reached a low of EUR32 very early in the session and then trended higher from there. Gas markets have been edgy regarding possible output disruptions in Australia but that has been tempered by lower industrial demand and high storage rates in Europe. Prices remain at low levels. North Asian prices have been steady through this month.

• Industrial action at Chevron’s Gorgon and Wheatstone export facilities in Australia is scheduled to begin tomorrow unless a last minute deal is reached between the company and unions. The action will intensify on September 14 to two weeks of 24 hour stoppages. Chevron hasn’t rescheduled any shipments as it is still working to achieve a deal and has said that it has contingency plans. Workers have offered to ensure that domestic supplies continue.
• Woodside reached an agreement in August and is now assisting Chevron with its negotiations and the Fair Work Commission is mediating.