Prices of European natural gas slumped further to extend the losing streak in over a year, amid US efforts to address the ongoing energy slump.
- The benchmark Dutch front-month gas slipped 9.2% to mark the fifth straight day of declines, as additional vessels ferrying liquefied natural gas to Europe drive optimism that supplies will address market issues.
- The decline comes after last week’s surge when temperatures declined to freezing levels and a steep decline in supply from Russia. Demand has also taken a backseat with milder weather in mainland Europe.
- US liquefied natural gas cargoes on the way to Europe climbed by over a third over the weekend, with the region attracting additional inventories with Asian buyers choosing to use their inventories.
Uncertainties remain to hound the sector amid the decline in temperatures expected in the second week of January.
Source: Bloomberg
