On Monday, June 19, European natural gas futures prices fell 14%, falling sharply for the second day in a row, giving up some of the gains driven by supply risks and hot weather earlier this month.
Stabilizing prices suggest that the market may be regaining some stability.
Inventories remain more abundant this quarter than usual, but the possibility of outages, or a sudden increase in demand for the fuel from businesses and households, could still pose a threat to supplies in the region ahead of the next heating season.
Warmer-than-normal temperatures are expected to hit parts of northern Europe earlier this week, with temperatures above 30C in Frankfurt and Berlin, which could boost cooling demand, which could affect prices, weather forecaster Maxar said.
Analysts at Inspired Energy said in a note on Friday that recent volatility in the gas market “underscores the complexity of traders” assessing whether the energy crisis remains severe enough to continue importing additional LNG into the summer.
