The downward momentum has continued this week in both European and UK gas markets.
Whilst there was a recovery in prices yesterday due to concerns regarding Ukrainian energy infrastructure hit once again by Russia, the overall fundamental picture continues to cap gains.
Norwegian exports are increasing as flows return from maintenance with most of the work nearing its end. European stock levels remain at a high of 93.4% fullness and industrial demand remains tepid.
The weather forecast for the next couple of weeks is also expected to remain around normal levels. With no additional concerns over supply the market is teetering slightly below on Wednesday.
However, volatility is expected to continue as we approach the winter period with concerns of colder weather leading to shortages, Europeans reliance on LNG making the region vulnerable to outages and competition from Asia and finally geopolitical risks.
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