European Gas Extend Plunge as LNG Supplies Promise Re-Balancing of the Market

Source: Bloomberg

European natural gas extended its falling trend to the longest in over one year as shipments from the US were expected to ease the region’s energy shortage. TTF1! down -19.37%

• Benchmark Dutch front-month gas dropped for the 5^th consecutive day, falling nearly 8.3% in Amsterdam. 
• Additional vessels ferrying liquefied natural gas are moving towards Europe, increasing expectations the new supplies will re-balance the market.
• Prices have dropped after rising to record-highs last week after a sharp decline in gas flows from Russia.
• Traders are also assessing whether Russia is ready to book additional pipeline capacity for shipping more gas to Europe next month. 
• The number of US LNG cargoes moving towards the European ports grew by 30% over the weekend.
• The region is attracting extra supplies as Asia’s biggest buyers are choosing to use their inventories over the winter rather than purchasing more.