European gas prices continued their decline on Tuesday as mild weather at the end of the year eased supply concerns and boosted inventories.
Gas in the Utch front month fell as much as 3.6 percent after plunging last week as temperatures across northwest Europe are expected to remain above norm well into the new year.
Abundant liquefied natural gas (LNG) supplies, above-average inventories and a typical year-end slowdown in industrial demand are also dragging down the benchmark for the region.
The warmer weather, coupled with higher wind power generation, has allowed Germany to store gas for the past five days, BNetzA President Klaus Müller said in a tweet. This is good news for security of supply next year, he added.
European gas inventories rose to 83.1 percent from 82.9 percent over the weekend as mild weather allowed countries to stash the surplus.
Lower European futures are also helping to ease pressure on Asian LNG prices.
Meanwhile, traders are watching closely for signs of a disruption in LNG flows from the US, Europe’s main supplier, after a violent winter storm battered parts of the country.
Dutch gas for the front month fell 0.8 percent to €82.34 per megawatt-hour as of 10:38 am Amsterdam. It plummeted nearly 30 percent last week.
https://www.independent.ie/business/world/european-gas-futures-edge-lower-on-warm-weather-forecast-42246124.html European gas futures are lower on warm weather forecasts