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European gas stays supported despite modest LNG recovery
ING says EU storage is just above 50%, far below both the five year average and the 75% level targeted under EU rules.
European natural gas prices have held up better than oil, with ING pointing to a modest LNG supply recovery and ongoing disruptions to Middle East flows, factors that have helped keep gas prices supported.
Heatwaves have boosted demand, leaving EU storage just above 50% and well below the five year average of 66% at this point in the year, ING said.
ING expects European gas prices to remain well supported through the 2026/27 winter even with some potential El Nino relief, noting that ramp ups from LNG plants in Qatar will take time.
The analyst also highlighted that QatarEnergy extended force majeure on some supply until early September, and said it may be difficult for the region to reach even the lowest EU storage target of 75%.
Latest closeNat gas $2.680 ▼3.1%