European natural-gas prices are on the rise due to concerns over the pace of storage replenishment. These concerns have resurfaced just two months into the stockpiling season and ahead of a key deadline in November.
Analysts from ANZ have indicated that the increasing pressure is a result of challenges in auctioning capacity at prices that are high enough to cover operating costs. The analysts have also warned that the shortfall could lead to government intervention.
Despite these concerns, demand on the continent decreased by nearly 5% in May. At the same time, imports of liquefied natural gas maintained strong levels.
In early trading, the benchmark Dutch TTF contract increased by 0.7% to 36.12 euros a megawatt hour. Despite this increase, the contract is still down 1.5% on the week.
