European natural-gas prices moved slightly lower in early trading on Thursday, with prices around €33 per megawatt hour as European Union member states work to fill their storage facilities.
EU gas inventories have now reached more than 65% capacity, putting the bloc on course to achieve its target of 80% fullness by November 1, according to market observers. Despite this progress, current storage levels remain below both last year’s figures and the five-year average.
“Europe has boosted LNG imports this year after ending winter with reserves lower than usual,” analysts at ANZ Research said.
The analysts noted that reduced demand from China has helped Europe secure additional supplies. “However, lower demand from China, where imports fell almost 20% in the first half of the year, has increased the availability of cargoes on the spot market,” they added.
This increased availability of liquefied natural gas on global markets has supported European efforts to rebuild inventories ahead of the coming winter season.
