Natural gas futures in Europe and North America saw opposite movements on Wednesday. Dutch Title Transfer Facility (TTF) natural gas futures, which are a key indicator for Europe’s energy market, fell by 0.49%, reaching €41.350. This decline was influenced by several factors affecting gas prices in Europe.
Warmer spring temperatures across northwest Europe led to reduced heating demand, contributing to the price drop. Additionally, increased liquefied natural gas (LNG) imports to European ports, along with lower LNG demand from China, helped ease supply concerns in Europe.
The market received some relief from early reports of potential agreements between Russia and Ukraine regarding the Black Sea, further reducing supply fears and putting downward pressure on prices.
Meanwhile, in North America, U.S. natural gas prices rose by more than 1%, surpassing $3.890. This price increase came despite mild temperatures across much of the country. The boost in prices was driven by strong natural gas exports to LNG facilities. The U.S. has become the world’s top LNG supplier, with increased output from facilities like Venture Global’s Plaquemines LNG plant further supporting demand.
Demand projections for the next two weeks have been revised higher. While overall demand is expected to decrease as the weather warms, the updated forecasts suggest stronger-than-expected consumption in the near future.
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