The warm start to the heating season hit gas prices in Europe. Within a week they dropped by 40%.
According to the ICE exchange, gas supplies in Europe in November dropped to $396 per thousand cubic meters, and a day ahead – to $300. While a week ago quotes were at the level of $500-$530. The price drop was 25%-40 %.
The filling level of storage facilities in Europe has already reached 95%. However, the sharp price drop occurred for other reasons. Warm October has arrived in the EU countries. For example, in Germany and Poland the temperature rises during the day to 23 degrees Celsius, and in southern Europe – up to 30 degrees.
In addition, Norway is delaying the removal of its fields from preventive maintenance, but is gradually increasing exports. So, if in the first half of September supplies decreased to 122 million cubic meters per day, then this week they increased to 270 million cubic meters. At full capacity, exports amount to more than 330 million cubic meters per day and can reach 343 million cubic meters.
However, even spot prices of $300 are not comfortable for Europe. For example, over the last five years before the energy crisis, the average gas price at the German hubs of Gaspool and NCG was $180. However, as experts note, without Gazprom’s powerful exports, such prices are impossible, since the cost of LNG is higher, and Europe has to restrain demand, so It is not possible to compensate for all supplies of Russian fuel.
2023-10-03 14:39:00
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