European Gas Posts Longest Declining Streak in More Than a Year
(Bloomberg) -- European natural gas extended its declining streak to the longest in more than a year as shipments from the U.S. look set to ease the region’s energy crunch.
Benchmark Dutch front-month gas fell for a fifth day, dropping as much as 9.2% in Amsterdam. More vessels carrying liquefied natural gas are heading to Europe, raising expectations the new supplies will help to re-balance the tight market.
Prices have declined after soaring to record levels last week amid freezing temperatures and a sharp drop in gas flows from Russia. While milder weather in much of mainland Europe over the coming week will curb energy demand, the region’s storage sites are still about 23% below the five-year average for this time of the year.
The number of U.S. LNG cargoes heading for European ports jumped by one-third over the weekend. The region is attracting more supplies as Asia’s biggest buyers are opting to use their inventories this winter instead of procuring more.
LNG WRAP: Asia Prices Fall on Ample Stockpiles, Cargoes Divert
Dutch front-month gas fell 1.3% to 105.50 euros a megawatt-hour at 5:26 p.m. in Amsterdam. U.K. gas trading on ICE Futures Europe remained closed for holidays.
However, the market remains on edge as forecasts show temperatures will drop to way below normal in the second week of January.
Russia’s Gazprom PJSC decided against booking any capacity offered by Ukraine for next month at a so-called interruptible capacity auction on Tuesday. Flows via Mallnow in Germany are also set to remain halted, after Russia decided not to book any entry capacity at the station for Wednesday at a daily auction.
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