The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
BLOOMBERG
European natural gas prices moved higher amid a forecast for colder and calmer weather that could boost demand at a time when production outages are set to limit volumes available for refilling stockpiles.
Germany is due to see unusually low temperatures this week, while a cold spell is expected in the UK next week, according to forecaster Maxar Technologies. Wind generation could dip next week in both nations, increasing the use of gas in power generation.
The region is beginning to replenish gas stockpiles, with inventories edging higher in recent days to about 57% full on average, data from Gas Infrastructure Europe show. Still, the injection pace is not as robust as usual for the time of the year, amid a largely colder April.
In addition, annual maintenance at Norwegian facilities and some other infrastructure next week could tighten supply. Troll, a giant gas field in the Nordic nation, has a compressor failure, limiting its capacity.
“It is important to note that the downside potential is much smaller than the upside potential and investors should be prepared for a sudden swing, if conditions allow for it,†Alfa
Energy said in a recent note. “Norwegian gas outages are propping up short term prices and prices are likely to be rangebound†through the week.
Benchmark futures rose 4.8% to €43.10 a megawatt-hour in Amsterdam.