The end of March storage estimate from Bloomberg has been lowered from 49% to 39% full due to less demand destruction.
- A steep drop in spot prices and cheaper forward curve could revive demand especially from the power sector and with increased residential and commercial use next winter.
- The lower March storage forecast highlights the increasing risk the European market faces for 2024.
- They forecast gas demand savings in the region of 23bcm in May23 to Mar24 compared to the 2016-2020 average.
- Plentiful LNG and continued demand destruction could see Northwest Europe, Italy and Austria completely fill gas storage by the end of September according to Bloomberg.
Source: Bloomberg