Natural gas prices in Europe have fallen 16 months after China’s stockpiles were full. This has caused buyers to ship supplies from China to Europe.
Today’s drop in the Dutch futures, which is the European benchmark for futures in Netherlands, was as high as 9%. The total drop in the year to date is now 22%
Stocks have been relatively stable in Europe due to mild weather. Chinese importers are trying divert February and March shipments from China to Europe, despite weak domestic prices.
Many market participants are less worried that the country’s opening will lead to increased demand and attract cargoes from abroad.
Gas markets are now at ease after a volatile 2021 when oil prices rose to new heights and economies were devastated.
The benchmark for Europe is the Dutch front-month gas futures, which have dropped 8.2pc to EUR59.50/ megawatt-hour. This is their lowest level since September 20,21.