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High European Inventory Levels Reassure Markets

LNG

European LNG prices fell below EUR 30 on Monday. They are down 5.5% to EUR 29.08 after a high of EUR 30.46 midway through the session, as potential supply disruptions became less concerning. They are still up 6.4% in April to date.

  • The European heating season finished with storage facilities 58% full and so there are expectations that they will be refilled ahead of next winter as soon as October. This has helped to minimise the impact from the possibility that the EU will ban Russian LNG imports as part of their 14th set of sanctions.
  • US natural gas prices rose 2.7% on Monday to be up 2.1% this month, as forecast warm weather for the east of the country signalled the start of air conditioner usage.
  • North Asian prices fell 0.3% but are still up 11.1% in April. The resumption of flows at the US’ Freeport export terminal after outages weighed on prices.
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European LNG prices fell below EUR 30 on Monday. They are down 5.5% to EUR 29.08 after a high of EUR 30.46 midway through the session, as potential supply disruptions became less concerning. They are still up 6.4% in April to date.

  • The European heating season finished with storage facilities 58% full and so there are expectations that they will be refilled ahead of next winter as soon as October. This has helped to minimise the impact from the possibility that the EU will ban Russian LNG imports as part of their 14th set of sanctions.
  • US natural gas prices rose 2.7% on Monday to be up 2.1% this month, as forecast warm weather for the east of the country signalled the start of air conditioner usage.
  • North Asian prices fell 0.3% but are still up 11.1% in April. The resumption of flows at the US’ Freeport export terminal after outages weighed on prices.