Gas prices in Europe continued to fall Friday on the back of high LNG supplies, good storage levels and moderate weather.

The TTF (TRNLTTFMc1) Dutch hub gas front futures fell 1.52% to €35.75 per megawatt hour, having earlier slipped to €35.13 per megawatt hour, the lowest mark since July 2021.

The TTF (TRNLTTFD1) price for gas with settlement tomorrow fell by 1.67 percent to 35.25 euros per megawatt hour.

Tomorrow’s gas prices in Great Britain (TRGBNBPD1) were down 1.86% to 79 pence per thermo.

Weather conditions looked moderate to near normal and liquefied natural gas (LNG) supplies remained strong, a trader said.

“Europe will experience erratic weather until May 20, with temperatures above normal at first and dropping to near or below normal from next week”, said Refinitiv meteorologist Georg Müller.

Norwegian gas system operator Gassco said the Norwegian LNG plant in Hammerfest is suspended until mid-May, but the return of the massive Troll field after maintenance from next week will increase Norwegian supplies.

Gas storage in Europe is 60.5 percent full; Gas Infrastructure Europe data showed.

Assuming demand and LNG imports remain at current levels, inventory levels will reach 100 percent by the end of August, Morgan Stanley analysts said in a note.

“That would be problematic because inventories don’t typically start to decline until late October,” they added.

To prevent such a scenario, LNG imports would have to decline by about 150 million cubic feet per day, or 35% from the average of the past six months, over the next several summer months, they said. 

Earlier, we reported that Saudi Arabia lowers oil prices for key markets.