Mild Weather & Robust Stocks Continue Driving Prices Lower

European LNG prices continued trending down on Tuesday and are now around 22% lower in February. They fell 0.3% to EUR 23.63 after a high of EUR 24.58 as the impact of disrupted Norwegian flows was offset by mild and windy weather, which boosted wind power output. Maxar Technologies are forecasting the warmer than average weather to continue next week.

• Yesterday wind power provided around 40% of the UK’s energy needs compared with 29% for gas, according to grid data reported by Bloomberg.
• High European storage levels have pressured LNG prices throughout the winter and they are expected to remain above 50% by the end of March. Markets are now looking to the restocking that will take place over the spring and summer.
• US natural gas prices remained soft through most of Tuesday on mild weather reaching an intraday low of $1.63 but it rose sharply at the end of session to $1.78. Gas is almost 20% lower this month.
• Asian gas prices continued moving down as supply remains ample. They are now around 16% below the end of January.