From S&P Global Platts, March 1:
Continuing the theme of strong commodity prices in early 2021, this week's Tracker considers spikes and rallies across several products: rhodium, styrene and ethanol. Meanwhile, China shows enthusiasm for a new crude grade from Iraq; Japanese utilities stock up on LNG and Europe runs down its gas in storage.
....6. Europe's heavy gas stock drawdown suggests summer price upside
What's happening? EU gas storage sites are now less than 38% full after a strong drawdown of stocks through February as Europe battled extremely cold temperatures. Despite having started the withdrawal season in October with its storage facilities almost 100% full, Europe has seen its stocks emptied at rates not seen since the Beast from the East weather event in 2018. In Germany, storage sites met almost two thirds of consumption during some peak demand days in February.
What's next? Barring any more cold weather, the EU's stocks should retain a relatively healthy buffer as Europe exits winter. However, in order to build storage levels back up, there will need to be strong buying over the summer injection season, which is likely to offer some support to European gas prices. That would be in stark contrast to 2020, when Europe ended the storage withdrawal season with healthy stocks after a mild winter, which coupled with the demand impact from the coronavirus pandemic led to a summer collapse in European gas prices....
....MUCH MORE
