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(Bloomberg) — Natural gas prices in Europe headed for a fourth weekly loss, with the energy crisis easing amid unseasonably warm weather that has reduced demand for heating.
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Benchmark futures resumed their slide, declining 9% this week. Mild temperatures are likely to continue next week, with much warmer-than-average weather forecast France and Germany, according to Maxar Technologies Inc.
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Energy prices have been a key driver of inflation, and unexpectedly low demand is easing the burden on consumers and sparking optimism among European authorities. After record prices last year and fears that governments would have to resort to rationing, the mild winter is a gift that is helping the region keep inventories at healthy levels.
Record-Hot Winter Gives Europe Breathing Room on Energy Crisis
“We are very optimistic, which we weren’t really back in the fall,” Klaus Mueller, president of Germany’s network regulator, said in an interview with public broadcaster ARD, adding that a gas shortage this winter is unlikely. “The more gas we have in storage facilities at the beginning of the year, the less stress and cost we will face in filling them again for next winter.”
European stockpiles are 83% full — above the five-year seasonal norm for this time of year —with some nations even sending gas into storage in recent days. In Germany, the region’s largest economy, that level is almost 91%, according to Gas Infrastructure Europe.
Dutch front-month futures traded 4% lower at €69.50 per megawatt-hour by 8:40 a.m. in Amsterdam, after jumping 11% on Thursday.
