European gas prices slump to a ten-year low
Natural gas prices in Europe are dropping even lower than the recent 10-year lows. Gas storage facilities across the European regions are lower than usual for this time of the year. The suppliers of Natural Gas are not anticipated to restrict deliveries instead of low prices, improper supply, and cool demand. The winter season in the month of October is set to commence with temperatures around or above seasonal standards, early forecasts recommend.
All these elements merge to generate a perfect storm for natural gas prices in the European continent which are observed for a further fall this month, at least until winter comes. Low liquefied natural gas(LNG) gather prices amid lower supply and slower demand from Asia have helped Europe to fill up its storage tanks to more than average levels in this summer season.
Natural gas prices in Europe decreased to a ten-year low at the start of July month as Russia and the United States of America continue to fight for the market share. Due to the minimum prices of the natural gas in a decade, storage tanks in many European nations are higher than the 5-year average that is ahead of the upcoming heating season. Reportedly, the traders continue to ship LNG to Europe and meanwhile, waiting for trading opportunities when the winter season approaches and gas prices increase.
According to the data gathered from Gas infrastructure Europe, as of the 2nd of September, storage facilities in Europe were 92.25 % The natural gas levels in storage now are much greater than what is representative for early September. The biggest pipeline suppliers to Norway, Europe and Russia are not limiting their deliveries even in the price gains at a 10-year low and possibility of further price declines.
The gas giant of Russia holds about 33% of the natural gas market of Europe which is still fighting for market share, told by the Niek van Kouteren, a senior trader at Dutch energy company.