Gas prices in Europe fall in the absence of demand
Benchmark natural gas prices in Europe fell on Tuesday, extending losses from the past four weeks, as demand in the region remains at a low level despite indications showing progress in rebuilding inventories ahead of the coming winter, Bloomberg and Agepres report.
Around 11:13 a.m. at the Amsterdam gas hub, where benchmark prices for Europe are set, gas futures for delivery next month were down 1.6% to 38.21 euros per megawatt-hour.
Although the eurozone managed to avoid an energy-price recession over the winter, recent economic data points to a slow pace of recovery and deteriorating business confidence.
Traders are watching closely for signs of increased gas demand in the industry, after prices have fallen by around 50% since the start of the year. Although Europe has been buying liquefied natural gas (LNG) heavily after Russian gas deliveries were cut, the number of LNG carriers at sea for more than 20 days has reached 34 in recent days, Bloomberg data show.
