European gas falls amid higher Russian flows, mild weather

Bloomberg

Natural gas prices in Europe declined as Russia’s shipments increased and weather forecasts pointed to milder temperatures in the region.
Orders to send gas through Ukraine via Velke Kapusany, a major entry point in Slovakia, rose to the highest level since January 1, according to data from operator Eustream. Shipments still remain below normal. Above-average temperatures are expected across most of mainland Europe next week, Maxar said in an emailed report.
Traders are watching for any sign that Russia will bring some relief to the tight European gas market, amid concerns over escalating geopolitical tensions surrounding Ukraine. A conflict could potentially reduce gas flows into Europe at a moment when inventories on the continent run dangerously low and winter demand remains high.
Western allies are pushing ahead with diplomatic efforts to avert war as Russian troops mass on Ukraine’s borders. The US is putting as many as 8,500 troops on heightened alert for deployment to bolster Nato forces in Eastern Europe if needed.
Despite higher Russian flows via Velke Kapusany, shipments are still below normal. Average flows in January last year were more than 760 gigawatt-hours a day, compared with 446
gigawatt-hours on Tuesday.
Meanwhile, gas demand for heating and power generation is expected to ease next week. Milder temperatures will coincide with high potential wind power production on the continent, according to a report from The Weather Co.
Europe has recently received some relief from its energy
crisis in the form of liquefied
natural gas shipments.