2023-09-11 18:15:00
London: The price of European natural gas rose on Monday, pushed by disruptions in the supply of liquefied natural gas from Australia due to a strike, while oil weakened due to profit-taking, remaining near its highs levels since November. Around 5:40 p.m., the Dutch TTF futures contract, considered the European benchmark, climbed more than 6% to 36.75 euros per megawatt hour (MWh).
“The gains were mainly caused by strikes at Australian LNG (liquefied natural gas, editor’s note) facilities which have now come into effect,” comment Energi Danmark analysts.
Employees of the American energy giant Chevron began rotating strikes on Friday for an increase in their salaries at the American group’s gas production sites in Australia.
“Chevron’s facilities represent nearly 7% of global LNG supply,” explain DNB analysts.
However, Asian buyers in need of liquefied natural gas might therefore be pushed to outbid their European counterparts and turn to the United States to compensate for the lack of Australian supply, boosting demand.
The war in Ukraine has led to Europe’s greater reliance on liquefied natural gas, with the Old Continent scrambling to reduce its purchases of Russian gas.
This dependence has led to “greater price volatility, with the market more exposed to global demand and supply disruptions,” DNB analysts continue.
At the same time, “the maintenance of Norwegian infrastructure continues”, also reducing the supply available on the market, continue Energi Danmark analysts.
On the oil side, the barrel of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. from the North Sea, for delivery in November, lost 0.31% to 90.37 dollars. Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for delivery in October, slipped 0.50% to 87.07 dollars.
Oil prices were catching their breath due to “profit taking following recent gains”, explain DNB analysts.
The two global benchmarks for black gold are indeed at very high levels, driven by the extension of production and export restrictions from Saudi Arabia and Russia until the end of the year.
They indeed hit new highest prices since November on Monday, at $91.45 for the Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. and $88.15 for the WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy..
The cuts by the two heavyweights of the Organization of the Petroleum Exporting Countries and their allies (OPEC+) have “virtually guaranteed that the oil market will remain tight until the end of the year, meaning that any easing of the “demand will only produce buying opportunities”, and not an accentuated drop in prices, says Edward Moya of Oanda.
Because concerns still persist “on the demand side, due to the weakness of the Chinese economy”, tempers John Plassard, Mirabaud analyst.
(c) AFP
Comment The price of natural gas rises with the strike in Australia, oil falls
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