TELF AG, a comprehensive international physical commodities trader, has published a report titled “TELF AG on European Gas Futures – September 19, 2023,” addressing recent developments in European natural gas futures.
The report highlights a significant 8% surge in European natural gas futures, reaching €35.5 per megawatt-hour. This surge is attributed to the breakdown of union talks and partial strikes initiated at two Chevron facilities in Australia. These facilities play a pivotal role in the natural gas sector, supplying over 5% of the global total, particularly to Asia. The strikes could potentially disrupt LNG supply to Asia if they persist.
Despite rising gas prices, Europe currently maintains fuel reserves at approximately 93% capacity, exceeding the European Union’s target date of November 1st for such levels. However, the elevated gas prices, about 50% above pre-invasion long-term averages, are impacting households and key industries.
The report highlights challenges faced by industries such as Germany’s automotive and petrochemical sectors due to high gas prices. Concerns about potential relocations by energy-intensive industries are growing if current price trends continue.
TELF AG emphasises the dynamic nature of the European gas futures landscape. Ongoing issues at Chevron’s Australian facilities and the upcoming winter demand from Asia are expected to contribute to an eventful period for the gas industry.