Mild Weather Weighing On Gas Prices

European gas prices reduced some of its losses for the day in the European afternoon but still finished down almost 3% at EUR 27.60, close to the intraday high of EUR 27.87. A Ukrainian drone attack on a Russian gas terminal on the Baltic coast was unable to buoy the market given continued high storage levels. Storm Isha has also provided an increase in wind power.

• Some European weather forecasts are pointing to mild weather for the start of February. A mild winter with lacklustre industrial activity has kept LNG prices down in recent months. Storage levels are likely to be higher than usual at the start of spring.
• US natural gas prices fell over 5% on Monday to be down 8.3% in January to date as weather forecasts predict above average temperatures for the US east coast at the start of February.
• North Asian prices are down over 18% this month so far and low prices have now triggered some buyer interest.