The Spot Natural Gas prices outlook: Europe and Asia markets
In Europe, forecast for continued mild temperatures for most of this week may weigh on northwest European gas hub prices. However, low storage levels and Russia Ukraine tension are adding to the bullish sentiment.
Additional restocking demand is expected to materialise this week from importers in Japan and South Korea, following a period of below normal temperatures, which has increased gas demand for power generation.
Meanwhile, weather forecast points to temperatures lower than the seasonal norm in Tokyo for this week. Moreover, as the Chinese Lunar New Year celebration draws to a close, Chinese importers may seek spot cargoes. On the supply side, the Pacific basin looks somewhat tight amid several production issues, while Asian end- users are seeking to replace cargoes from Malaysia’s Bintulu project. U.S. natural gas futures edged up on Tuesday, as forecasts for a little colder weather than expected and higher heating demand over the next two weeks offset a slow increase in output following weeks of reductions due to freezing wells and pipes.
Oil slid more than 2% on Tuesday from recent seven-year highs, on More U.S.-Iran Talk
Oil slid more than 2% on Tuesday from recent seven-year highs as the resumption of indirect talks between the United States and Iran could revive a 2015 nuclear deal, that former-U.S.
President Donald Trump left in 2018 and allow more oil exports from the OPEC producer. The
U.S. government is attempting to tame oil prices by urgently negotiating a new nuclear agreement with Iran, analysts said.
A deal could return more than 1 million barrels per day of Iranian oil to the market within four to six months, boosting global supply by about 1%. Oil came under further pressure from the prospect of an increase in U.S. crude inventories. Analysts expect the latest U.S. oil inventory data will show a 400,000-barrel increase in crude stocks in the week to February 4. Prices were also dented on Tuesday when French President Emmanuel Macron said his meeting with Russian President Vladimir Putin helped prevent a worsening of the Ukraine crisis.
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All Data Quoted Source: Mediterranean Gas Energy Research Division, OPEC, ABHAIF. Copywrite 2022. All Rights Reserved Mediterranean Gas S.A.
Volos, Wednesday, 9th February 2022