Natural gas price remains above $5.00 despite declining significantly from its 7-year high. Russia is expected to increase supply to the European continent in the near term.
Natural gas price ended Friday’s session down by 3.04% at $5.57. While the commodity has remained above the crucial support zone of $5.00, it has dropped by about 14.42% from its 7-year high of 6.53. The aforementioned support zone has been a steady one since early September.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
The recent decline in natural gas price is a reaction to President Putin’s call for the exportation of more gas to Europe. On Thursday, the Russian leader ordered the state-run gas company – Gazprom -to send more gas to Austria and the European continent as soon as it fills its domestic storage facilities. The firm’s underground storage in Central and Western Europe is significantly low. At this time of year, the facilities are usually almost full in preparation for the winter season in the northern hemisphere.
Russia is the key source of the natural gas consumed in the European continent. The country has been accused of holding back supplies; fueling the ongoing energy crunch. Besides, Asia has its hands on the US product, which would otherwise be headed to Europe.
Even with the recent decline, natural gas price in Europe is still over 5 times higher than it was in 2020 during the similar period. The amount of product in storage facilities is 15% lower than expected during this season. Futures will likely remain above $5.00 in the short term as demand heightens during the winter season.
Natural gas inventories
Data released by the Energy Information Administration (EIA) on Thursday showed that the amount of natural gas in underground storage within the US was 3,548 billion cubic feet (Bcf) for the week ending on 22nd October. The number represents an increase of 87 Bcf from the previous week. However, the stocks remain 403 Bcf below last year’s levels during a similar period. It is also 126 Bcf lower than the 5-year average. In addition to Putin’s orders, EIA’s weekly report will influence prices in the new week.
67% of retail CFD accounts lose money
- China forcing migration of Uyghur Muslims from Xinjiang, says report – Times of India
- “They are just too strong” – Michael Owen predicts the result for Chelsea vs Manchester United
- #VicKat wedding: Everything about Katrina Kaif’s ₹1 lakh Rajasthani Mehendi
- Nagaland takes travel inspiration from USA’s Sturgis, aims for off-road tourism
- Should you buy Apple stock as it nears a breakout? | Invezz
- Ed Orgeron will not coach LSU in bowl game: ‘I’m packing to go to Destin’