European gas rises toward 60 euros as U.S. futures slip 2.4%

U.S. natural gas futures fell ahead of the Energy Information Administration's weekly inventory report, while European gas prices climbed on renewed supply concerns. Nymex natural gas was down 2.4% at $2.737/mmBtu, with analysts in a Wall Street Journal survey expecting a 30 Bcf storage injection, slightly below the 33 Bcf five-year average. That would reduce the inventory surplus over the five-year average to 192 Bcf from 195 Bcf a week earlier. Eli Rubin of EBW Analytics said fading momentum could cap near-term gains without a bullish EIA print or continued warm weather. In Europe, the Netherlands-based TTF September contract traded just below 60 euros a megawatt-hour and was headed for a 6% weekly gain as geopolitical tensions and infrastructure disruptions added pressure. Jan-Eric Fahnrich from Rystad Energy said uncertainty around negotiations involving Iran and Oman over the Strait of Hormuz was increasing volatility. EU gas storage was 59% full, below last year's level, although additional U.S. LNG cargoes and diverted shipments from Egypt from October could help ease supply concerns.

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