Have European and UK gas contracts moved out of its recent trading range? Over the last couple of sessions prices have eased and are down to levels seen back in May with the NBP front month down 13% from June’s average. Whilst there might be some resistance the current level with technical indicators showing an oversold territory or at lower ends of the trading range, how prices move over the next couple of sessions will determine if it’s a breakthrough. For now, the market is comfortable, supply is steady from Norway and the UK, LNG send outs although weaker than previous year continue and storage levels are almost 80% full. Temperatures are improving in the UK with renewable generations stable. The market also continues to keep an eye on feed gas flows into the Freeport LNG plant in Texas after operations were suspended due to Hurricane Beryl. The US is the biggest provider of LNG to Europe. The region relies on the super-chilled fuel after losing most pipeline gas supplies from Russia in 2022.
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