Natural gas prices in Europe are expected to fall to their lowest point in a decade, as storage supplies continue to exceed demand, Bloomberg reported on Tuesday, Sept. 3.
The gas storages in northern Europe are already full, but still being flooded by the supplies. For example, by the end of August the inventories across northwest Europe, Italy and Austria reached 62.3 billion cubic meters, which represents 94% of their total capacity.
In order to scale the prices, the owners should scale back the deliveries or suspend new gas arrivals from Russia or Norway, experts told the media.
While energy giant Gazprom is still looking to increase its market share, the company admits its supplies to Europe will reduce to 192 billion cubic meters in 2019, which is almost 5% lower than the record volumes of 2018. The price of gas is also set to decline 13%.
Per senior gas trader at Dutch energy company Eneco Ahmed Hammoudan, the prices could fall further, forcing the producers to rethink their outputs. However, even if the prices shrink, the gas manufacturers are unlikely to reduce flows, as they are driven by volumes, he added.
Meanwhile, oil prices were also dropping on Tuesday, Sept. 3, as the U.S.-China trade tensions are still strong and the global markets are in the red.