European Gas Futures Decline Amid Mild Weather and Weak Asian Demand

Deep News12-04 22:00

European natural gas prices continued their downward trend as above-average temperatures and sluggish demand in Asia bolstered market confidence in fuel supply stability.

Weather forecasts indicate milder and windier conditions next week, reducing electricity and heating demand for gas. The unseasonably warm weather across the continent is expected to persist until mid-December.

Norway's exports remain relatively stable, while liquefied natural gas (LNG) supplies remain ample and are projected to exceed last year's levels. With global competition remaining subdued, more cargo shipments are being directed toward Europe.

As of 2 p.m. Amsterdam time (9 p.m. Beijing time), the benchmark Dutch front-month gas futures contract fell 3.2% to €27.31 per megawatt-hour.

Prices this week hit their lowest level since April 2024, entering oversold territory.

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