Monday, March 29, 2021

Platts' "Commodity Tracker: 6 charts to watch this week"

From S&P Global Platts, March 29: 

....5. EU gas storage refill could drive higher Russian pipe volumes, LNG imports

EU gas storage 2018-2020

What's happening? EU gas storage sites are now less than 30% full after a particularly heavy withdrawal season over the winter, with market players now preparing to switch to injection mode in a bid to replenish stocks. Estimates suggest 50% more gas will be needed this summer to build back stocks, which were critical in meeting the record-high demand triggered by cold weather in January and February.

What's next? The potential for strong injection demand could support prices as the market looks to refill storage facilities, while buyers will likely look to Russian pipeline volumes and LNG to provide the necessary supply. LNG, in particular, could be drawn to Europe as spot LNG prices have come down to the level of European gas prices in recent weeks....