European Natural Gas Holds Up as Storage Tight – ING
ING analyst Warren Patterson notes that European natural gas prices have held up better than oil due to modest LNG supply recovery and disrupted Middle East flows. Heatwaves have boosted demand, leaving storage just above 50%, well below the five-year average.
European natural gas prices are proving more resilient than oil, according to ING's Warren Patterson. The analyst points to a modest recovery in LNG supply and ongoing disruptions to Middle East flows as supporting factors.
A series of heatwaves has driven up demand for cooling, further tightening the market. EU gas storage currently sits just above 50% capacity, significantly below the five-year average for this time of year. The tight storage situation underpins current price levels and could keep prices elevated if demand remains strong or supply fails to recover.
Source: FXStreet Forex News