FX.co ★ UK Natural Gas Market Remains Subdued

UK natural gas futures are maintaining a steady position around 80 pence per therm, trading within a narrow band, as robust supply continues to outstrip demand. The British gas network is currently experiencing an excess supply of approximately 25.7 million cubic metres per day, as reported by National Gas. In Europe, storage facilities are nearly 83% full, reducing the competition for LNG cargoes. A steady influx of LNG shipments and consistent Norwegian pipeline flows ensure the market remains well-supplied, while decreased demand from China has made additional volumes available for Europe. However, temperatures are anticipated to revert to more seasonal norms towards the week's end. Concurrently, recent Russian attacks on Ukraine's energy infrastructure have heightened the possibility that Ukraine may increasingly depend on European gas supplies during the winter months.