Last Updated on: 22nd November 2023, 03:07 am
TELF AG, a comprehensive international physical commodities trader, has published a report discussing recent developments in European natural gas futures titled “TELF AG on European Gas Futures – September 19, 2023.”
Significant Natural Gas Price Surge
The report highlights an 8% surge in European natural gas futures, reaching a peak of €35.5 per megawatt-hour the previous Friday. This substantial price increase is attributed to the breakdown of union negotiations and the ensuing partial strikes at two Chevron facilities in Australia.
These Australian facilities play a significant role in the natural gas sector, accounting for over 5% of global supply. They primarily serve Asia, raising concerns about potential disruptions in LNG supply if the strikes continue.
Stable Gas Demand and High Reserves in Europe
Despite escalating prices, Europe currently maintains gas reserves at approximately 93% capacity, surpassing expectations and achieving this milestone ahead of the European Union’s target date of November 1st.
The report acknowledges that high gas prices, around 50% above pre-invasion long-term averages, are impacting households and critical industries. Industries such as Germany’s automotive and petrochemical sectors face challenges, and there are concerns about potential industry relocations if the price trend persists.
Dynamic Gas Futures Landscape
TELF AG concludes by emphasising the dynamic nature of the European gas futures market. Ongoing challenges at Chevron’s Australian facilities and the upcoming winter demand from Asia suggest an eventful period for the gas industry.