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Mild Weather Drives Down Prices

LNG

November contract European gas prices fell 1.3% to EUR 42.53 on Friday due to mild autumn weather ahead of the official start of the heating season. In addition storage facilities have historically high stocks. They were down 4% on the week and -11.8% from Monday’s high of $48.20, which was the September peak. The October contract finished the month up around 12% but the November contract was down 6.6%.

  • The first half of October is forecast to see higher-than-average temperatures. Given this and tightness in the market, prices could continue to be volatile.
  • Turkey raised its natural gas prices by 20% for electricity production and for industry.
  • India’s natural gas output rose 10% y/y in August.

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