VIDEO: European Gas Outlook: Week 33

LONDON (ICIS)–Market reporter Jake Stones provides an overview of the key price drivers for European gas markets over the next seven days:

• With the Dutch TTF and British NBP M+1 and M+2 contracts soaring in week 32, selling will be eyeing European shores for the gas winter as the spread between European hubs and Asia has narrowed
• Supporting remaining summer contracts will be an easing of storage levels. Only 5bcm of natural gas was injected in European storage sites in July following reduced supply from cancelled LNG cargoes, pipeline outages and shippers utilising Ukrainian storage. Stocks are now nearing 2019 levels.
• On the prompt for North-West European markets, support will come from high temperatures increasing demand for power used for cooling units.
• The British NBP prompt will also see support from low wind, averaging just 3.2GW across the week, and reduced capacity for fields delivering in the SEGAL. Capacity will be cut by 15mcm/day between 12-27 August.