European gas traders expect natural gas prices to be higher next summer than the following winter, an unusual prediction indicating a struggle to refill storage facilities as Europe reduces reliance on Russian supplies.
European gas traders expect prices next summer to be higher than the following winter, an unusual bet that reflects the steep cost of refilling the continent’s storage facilities as it tries to wean itself off Russian supplies. Natural gas in Europe has historically tended to be cheaper in the summer when demand is lower. That has incentivised traders to buy in the hotter months and store gas to sell at a profit during the winter peak heating season.
Traders say the EU target, which has since been raised to 90 per cent, was pushing summer prices higher. The mandate was not an issue in the past two years as Europe exited winter with record gas storage levels, lessening the scale of the summer top-up operation. But analysts are expecting Europe to exit this winter with lower levels of gas than the previous two, and potentially much lower if much colder weather sets in.
Natural Gas European Gas Traders Russian Supplies Storage Facilities Energy Prices
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