Following a few strong sessions at the back end of last week the market continues to trade within a range. Fundamentals are improving with warmer temperatures expected throughout this week and holding around seasonal normal for the foreseeable future. Wind generation is also expected to pick up towards the back end of the week, whilst European gas storage levels are increasing (almost 64% full). Piped flow remains stable and Norwegian exports should improve later this week when Troll returns from maintenance. LNG arrivals are on the low side with a level of risk premium already added into market. LNG send-out rates declined over April as Asia continued to be a more attractive market for spot cargoes due to Asian prices trading at a premium to the European market for much of the year. However, there was some good news with the amount of natural gas flowing to Freeport LNG’s export plant in Texas increasing to a two-month high at the weekend in what energy traders said was another sign that the plant was wrapping up a series of outages. In other news this morning we are seeing reports of another round of Russian air strikes on the Ukrainian power grid with the Lviv governor also mentioning an attack on a natural gas storage facility in his region in the west of the country.
Copyright © 2024 Energy Live News LtdELN