The EU council has provisionally agreed with the Parliament to grant the most flexibility member states to meet their gas storage filling objectives, says Thu Lan Nguyen, head of FX Research and Commerzbank Commodities.
More relief for gas prices in Europe from the demand side
“The above target provided a 90% filling level before the start of the extraction phase. The member states will now be allowed to deviate from this objective up to 10 percentage points. An additional deviation of five percentage points is allowed in case of unfavorable market conditions. In addition, the EU has also softened the deadline to achieve the objective, in two months, around November 1 to be precise. Prices. “
“At the beginning of the year, doubts arose about whether the objective of 90% could be achieved in view of the significant decrease in storage levels after winter, which had led to a significant increase in gas prices. The flexibility of the objectives should, in fact, prevent member states from having to buy more gas at unfavorable prices in the spot market to fill their gas storage facilities in time.”
“There is more relief for gas prices in Europe from the demand side. According to Kpler, China LNG imports are expected to also be significantly lower than the previous year. The reason for this is probably the strong gas pipeline flows, such as those of Russia. If the demand for the import of LNG of China remains moderate, it is likely that gas prices in Europe are probable LNG, they also remain under control. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
