Natural gas prices continued to slide across all key gas markets in February amidst unseasonably mild weather and improving supply conditions.
In Europe, TTF prices fell almost 40% year-on-year to an average of $17/mmbtu. Lower demand (down by 6% yoy), strong LNG and high inventory levels (50% above 5y average) all provided downward pressure on gas prices. And while those prices seems to be low compared to last year’s record highs -they are still three times above historic price levels.
In Asia, JKM prices followed suite, falling by 33% compared to last year to average at $17/mmbtu. China’s demand remained close to last year’s levels and its evolution will be key in determining whether we are heading to a tighter or more loose market in 2023…
In the US, Henry Hub prices are traded almost 50% below last year’s levels at an average of $2.4/mmbtu. Unseasonably mild weather crashed residential and commercial demand, which was down by 14% yoy. US storage levels stand now 20% above their 5y average, giving comfort for the remainder of the heating season.
And Canada’s AECO followed its buddy Henry, dropping by over 40% to $2.1/mmbtu, amidst milder weather and lower exports to the US.
What is your view? How will gas prices evolve now, as we are heading out of the heating season?
Source: Greg MOLNAR (LinkedIn)
European Gas Hub is an online platform for sharing analysis and information about European natural gas markets more info
Sign up to receive our weekly newsletter with new European gas market reports, presentations & analysis. Every Tuesday.
By signing up, I agree to our TOS and Privacy Policy.
© 2020 EuropeanGasHub | All Rights Reserved
