US natural gas drops 4% as Europe hits storage target early despite Russian cuts
U.S. natural gas futures fell 4% on Tuesday, falling alongside European rates as the European Union hit its target of filling its gas storage two months ahead of schedule, even without Russian supply.
Ursula, President of the European Commission von der Leyen told an energy conference in Denmark that the EU’s gas reserves had reached an average of 80%, a target the EU had set itself to reach by November 1 .
On its first day as a first-month contract, US Gas Futures (NG1:COM) for October delivery was recently -4.1% at $8.953/MMBtu, falling to its lowest level since August 19.
ETFs: (UNG), (UGAZF), (DGAZ), (BOIL), (FCG), (KOLD), (USL)
As European gas inventories rise, easing fears of winter shortages, US natural gas prices fall with Dutch benchmark TTF, dropping as much as 11% to $81/MMBtu after hitting all-time highs the last week at nearly $100/MMBtu.
Benchmark German power futures in Europe rose above €1,000 on Monday for the first time – about 20 times higher than long-term historical averages – but have since fallen 26%.
German Chancellor Olaf Scholz said on Tuesday that his country was well prepared to deal with a possible energy shortage, as gas storage facilities are already more than 80% full – more than last year at the same time. time – and will likely reach a target of 85% by October 1. full by next month.
The European Union is preparing to intervene in the short term to slow the rise in electricity prices, which has fueled inflation and increased the risks of recession.
Energy markets fear that Russia will resume gas supplies once Nord Stream maintenance is complete.