European gas prices slip amid forecast for mild, windy weather
Storm Darragh led to an increase in wind power generation reducing the need for gas.
Natural gas prices in Europe fell for a fifth session, with an outlook for mild and windy weather later this month helping to shield inventories from faster depletion.
Benchmark futures dropped as much as 2.6% to the lowest level in more than two weeks. Storm Darragh swept through Ireland and Britain during the weekend, boosting wind power generation and reducing the use of gas in electricity production.
Temperatures in the northwest are forecast to rise and wind generation is expected to increase again toward the middle of the month, following a brief cold snap in the coming days.
Meanwhile, European imports of liquefied natural gas (LNG) are near the highest level since January.
Some LNG cargoes experienced delays in Wales over the stormy weekend, but one vessel is now unloading and four more are scheduled to arrive this week.
At the same time, Asian demand remains muted as top-consumer China may resell more LNG cargoes due to tepid industrial demand domestically and higher spot rates that make re-export more profitable, according to a note by leading private Chinese importer ENN Group.
Dutch front-month futures, Europe’s gas benchmark, declined 2% to €45.38 a megawatt-hour at 2.09pm in Amsterdam.
