Global gas & LNG weekly summary: 28 Oct 2022

Mild weather and floating storage build-up sends prices cratering, keeping injections and demand subdued for this time of year TTF’s November contract was trading at $29 intraday on Thursday, about a $5 drop from this time last week. The weather has been extraordinarily mild, suppressing demand at a time when withdrawals typically have started in Europe. Instead, we’re still seeing injections, and demand was down 20 mcm/d, totaling 1.009 bcm/d. This represents a 283 mcm/d decrease from last year. Less need for injections has had a knock-on effect of keeping abnormally large amounts of LNG on-the-water. The build-up has been exacerbated by the fact that premium regasification slots are scarce, and pipeline congestions in western Europe remain. On top of all that, Asian spot demand remains muted.