Europe Gas Prices Extend Fall After Weeks of Intense Volatility
(Bloomberg) -- European gas prices plunged for a second day, paring some of this month’s gains after several weeks of intense market volatility linked to supply risks and hot weather.
Benchmark futures dropped as much as 14% on Monday morning, after closing last week with the biggest drop since August. Prices are still up about 15% this month, following a series of unplanned outages and hot weather warnings put traders on edge about the balance of fuel supply and demand.
After weeks of turbulent price swings, cooling gas costs suggest that some stability might be returning to the market. Inventories remain fuller than usual for the season, but the possibility of further outages — or a sudden pick-up in fuel demand among businesses and households — could still present a threat to the region’s supply ahead of its next heating season.
![](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ih0sfM9uImr8/v2/-1x-1.png)
Warmer-than-normal temperatures are expected across parts of northern Europe early this week, with temperatures in Frankfurt and Berlin surpassing 30C (86F), according to forecaster Maxar Technologies Inc. That could boost demand for cooling, potentially impacting prices.
The recent volatility in gas markets “highlighted complications for traders,” who are now assessing whether the energy crisis is still severe enough to continue importing additional liquefied natural gas cargoes during the summer months, Inspired Energy analysts said in a note last Friday.
While it still looks like the European Union is on track to meet storage targets of 90% by November, there are concerns that short-term demand — prompted by a pick-up in Asia or greater cooling needs — could impact the plan, the analysts wrote.
Benchmark Dutch front-month gas were down 9.3% at €31.75 a megawatt-hour by 9:21 a.m. in Amsterdam. The UK equivalent fell 8.6%.
©2023 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More gas & LNG news
![Gas Plant](/media/ljgfdu4g/gas-plant.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132755817519670000&format=webp)
Novatek’s net profit more than doubles in H1 2024 to $4 billion amid revenue and output growth
![BloomburgMedia_SGZVIRT1UM0W00_22-07-2024_13-00-28_638572032000000000.jpg](/media/2l3gljsn/bloomburgmedia_sgzvirt1um0w00_22-07-2024_13-00-28_638572032000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133661268290430000&format=webp)
Woodside to Buy Tellurian in $900 Million Bet on Gas Demand
![BloomburgMedia_SGVHLEDWX2PS00_22-07-2024_07-50-47_638572032000000000.jpg](/media/xxnptkt0/bloomburgmedia_sgvhledwx2ps00_22-07-2024_07-50-47_638572032000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133661082478570000&format=webp)
Trump Vow to ‘Drill, Baby, Drill’ Collides With Industry Caution
![BloomburgMedia_SGV0UZT0G1KX00_22-07-2024_07-51-29_638572032000000000.jpg](/media/ssxf3fnm/bloomburgmedia_sgv0uzt0g1kx00_22-07-2024_07-51-29_638572032000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133661082896570000&format=webp)
How American Pension Funds Help Vladimir Putin’s Gas Gambit
![BloomburgMedia_SGNSMCDWLU6800_19-07-2024_12-00-06_638569440000000000.png](/media/solpejdc/bloomburgmedia_sgnsmcdwlu6800_19-07-2024_12-00-06_638569440000000000.png?anchor=center&mode=crop&width=240&height=135&rnd=133658640067970000&format=webp)
What’s at Stake for UK North Sea as Labour Government Sets Out Its Energy Policy
![Energy Connect Story Thumbnail](/images/default/gas-and-lng.jpg?anchor=center&mode=crop&width=240&height=135&format=webp)
Balyasny, Squarepoint Hire Gas, Power Traders as Sector Heats Up
![Totalenergies](/media/41ojyade/totalenergies.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132881916816700000&format=webp)
TotalEnergies sells 10% stake in Nigerian JV licenses to Chappal Energies for $860 million
![BloomburgMedia_SGRTKYDWLU6900_17-07-2024_16-00-06_638567712000000000.jpg](/media/pcwg1imz/bloomburgmedia_sgrtkydwlu6900_17-07-2024_16-00-06_638567712000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133657056066270000&format=webp)
Collapse of a Key Natural Gas Trade Points to a Massive US Supply Glut
![BloomburgMedia_SGO375DWLU6800_16-07-2024_16-00-06_638566848000000000.jpg](/media/npglxvwx/bloomburgmedia_sgo375dwlu6800_16-07-2024_16-00-06_638566848000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133656192065600000&format=webp)
Italian Energy Prices Soar as Heat Wave Boosts Cooling Demand
![Naturalgas KEZAD Group](/media/x0tk3veq/naturalgas-kezad-group.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133655893297070000&format=webp)
KEZAD commissions new natural gas network for clients
![CSIS Thumbnail](/media/o0acqjyg/csis_thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133566075809700000&format=webp)
CSIS: long-term LNG demand to reshape global export capacity growth
![Dr Carole Nakhle Thumbnail](/media/gqrpjths/dr-carole-nakhle_thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133542056370600000&format=webp)
More women in energy vital to the industry’s success
![Vandana Hari Thumbnail](/media/gz3dyktl/vandana-hari-thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133511540022930000&format=webp)
India’s energy sector presents lucrative opportunities for global companies
![OIL INDIA Thumbnail (1)](/media/oddlww2x/oil-india-thumbnail-1.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133506537128730000&format=webp)
Oil India charts the course to ambitious energy growth
![DNV Thumbnail](/media/chkphnjn/dnv-thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133491856590700000&format=webp)
Maritime sector is stepping up to the challenges of decarbonisation
Partner content
![Navigating the trading seas: exploring the significance of benchmarks-1859882229](/media/qlacaiww/navigating-the-trading-seas-exploring-the-significance-of-benchmarks-1859882229.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133613577584600000&format=webp)
Navigating the trading seas: exploring the significance of benchmarks
![New Lng Ship Web 17829](/media/vjrjyypa/new-lng-ship-web-17829.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133179936218300000&format=webp)
Back to the Future(s): the best commodities benchmarks are still physically settled
![Dr Klaus](/media/4eyh2dr0/dr-klaus.jpg?center=0.3953747239980292,0.50683017007953435&mode=crop&width=540&height=300&rnd=133517897092430000&format=webp)
Ebara Elliott Energy offers a range of products for a sustainable energy economy
![ESSAR](/media/5uafghtj/essar.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133524466961070000&format=webp)
Essar outlines how its CBM contribution is bolstering for India’s energy landscape
![HNC 7611 V2](/media/0dqbya15/hnc_7611_v2.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133517899616530000&format=webp)