Thursday, March 19, 2020

Natural Gas: "Europe’s bloated gas stocks paint bearish picture for summer"

Following on the oil storage post immediately below:
"Oil’s big storage problem" (TNK; FRO; EURN)

From Platts:
Commodity Tracker: 7 charts to watch this week
6. Europe’s bloated gas stocks paint bearish picture for summer

EU gas stocks 2015-2020
What’s happening? With just over two weeks left of the traditional European gas storage withdrawal season, the level of fullness in EU stocks is well above anything seen in recent years. Storages across the EU are currently around 57% full, compared with 41% full this time last year and just 23% full in mid-March 2018 when stocks had been drawn down to record lows by the Beast from the East cold spell.

What’s next? The high level of stocks – built up to almost capacity last year on fears of disruption to Russian gas flows via Ukraine – points to the likelihood of limited injection demand through the summer season. With the global glut of LNG persisting, Europe will not find it so easy to absorb the surplus LNG through storage this summer, which could bring more price pressure amid already bearish European gas market conditions....