In its latest report titled TELF AG on European Gas Futures – September 19, 2023,” TELF AG, a prominent international physical commodities trader, has shed light on recent developments in European natural gas futures.
Notable Price Surge in European Natural Gas Futures
The report highlights a significant 8% surge in European natural gas futures, reaching a peak of €35.5 per megawatt-hour on the previous Friday. This surge is attributed directly to the breakdown of union negotiations and the subsequent commencement of partial strikes at two Chevron facilities in Australia.
Impact on Global Supply
TELF AG’s report underscores the substantial role played by these facilities in the global natural gas sector, accounting for over 5% of the global supply. Their primary focus has been serving Asia, which now faces potential disruptions in its LNG supply, especially if these strikes extend over an extended period.
Muted Gas Demand in Europe
Despite the escalating prices, the report notes that gas demand in Europe remains muted. European fuel reserves are currently at approximately 93% capacity, a remarkable achievement considering these levels are the highest documented for this time of the year. This milestone has been reached ahead of the European Union’s targeted date of November 1st.
Challenges for Households and Industries
TELF AG highlights the challenges posed by the persistently high gas prices, which are approximately 50% above pre-invasion long-term averages. These challenges affect both households and critical industries. The report specifically mentions concerns within Germany’s automotive and petrochemical sectors, including worries about potential industry relocations if the current price trend continues.
Dynamic Nature of European Gas Futures In conclusion, TELF AG emphasises the dynamic nature of the European gas futures landscape. Ongoing issues at Chevron’s Australian facilities and the impending winter demand from Asia indicate an eventful period ahead for the gas industry.
To gain a more comprehensive understanding of these developments, readers are encouraged to explore the full article. For additional insights and content, visit TELF AG’s Media Page.
