European natural gas saw gains on worsening supply issues, including reduced flows from Norway and lower US liquefied natural gas volumes, Australia’s ANZ Bank said in a Tuesday note.
These added to worries over the risk of supply cuts to the continent from Russia, the bank noted. Gas inventories are rising, but Europe still needs to snap up large volumes of LNG to withstand further disruptions before next winter, ANZ Bank said.
The US, Europe’s main source of LNG, is facing the possibility of reduced volumes following a fire at the Freeport LNG facility in Texas, which is currently under investigation, the bank said. While the source of the explosion has been found, it is still uncertain how long the facility will remain shut, according to US safety authorities.
North Asian LNG prices remained well bid amid warmer weather in the region, which could be offset by ongoing lockdowns in China and a truck strike in South Korea that could affect industrial demand, according to ANZ Bank.
Source: Tradingview.com
