European natural gas futures dropped to €35 per megawatt-hour, as exceptionally high gas storage levels, decreased demand, and the possibility of worker strikes being averted in Australia outweighed reduced gas supply from Norway due to maintenance. Europe's fuel reserves are at a level of over 90% capacity, which is the highest ever recorded for this time of the year and surpasses the European Union's objective of achieving such storage levels by November 1st. Also, ongoing wage negotiations at major gas facilities in Australia are expected to prevent potential disruptions. On the other hand, maintenance work at Norway's Troll field led to a significant decrease in gas flows. Meanwhile, industrial activity in Germany has been in contraction for 14 consecutive months, a notable indicator of demand destruction, which is impacting the entire continent.
Historically, EU Natural Gas reached an all time high of 345 in March of 2022. EU Natural Gas - data, forecasts, historical chart - was last updated on August of 2023.
EU Natural Gas is expected to trade at 37.89 EUR/MWh by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 48.98 in 12 months time.