US LNG ‘relieves’ Europe – Gas and electricity are falling

Europe’s gas fell for a fourth straight day on Monday as US liquefied natural gas (LNG) supplies eased an extremely “pressed” market, with traders incorporating milder-than-expected forecasts and developments into their estimates. around the Omicron mutation.

Gas had reached historic highs of 180 euros per megawatt hour last Tuesday, mainly due to the extremely low flow from Russia. This is a price 10 times higher than last year. Today it is about to fall to about half of its 6-day high, its biggest drop in two months, as LNG shipments to Europe facilitate a continent that has seen industries shut down due to a lack of energy resources, such as notes the Bloomberg agency.

“As we enter the final days of 2021, the European energy complex does not seem to be calming down due to the holidays,” Timera Energy said in a statement. their activity “.

The European benchmark, Dutch gas contract The megawatt hour was falling today by up to 19% to 90 euros, at its lowest price since December 6, while it finally closed with a fall of 3.2%. Falling prices are pushing lower electricity prices, with the price of electricity in Germany for January falling by up to 36%, to 220 euros per megawatt hour, while the price in France fell by 28%.

LNG shipments are headed to Europe as Asian customers have their tanks full and now use stocks instead of placing new orders.

Forecasts for milder-than-expected weather in continental Europe will reduce energy demand, and there is relative uncertainty about the effect of the spread of the coronavirus’s Micron mutation. China recorded the highest number of cases since January at the weekend.

However, there is no immediate solution to the energy crisis plaguing European industry, with governments trying to reduce the burden on household electricity consumers. Russia’s Gazprom did not close any room for gas exports to Germany on Tuesday, which means that flows will remain extremely limited.