The gas with values below zero would not be an absolute novelty in the Old Continent: It had happened at the NBP in Great Britain in 2006, with the entry into operation of the Langeled gas pipeline from Norway in a period when storage was almost completely full.
Even today stocks across Europe are at critical levels: Almost 70% of the capacity is already used, a very high level for this season and the injections continued at a record pace also in April, stimulated by low prices and excess supply.
For oil, the Covid-19 emergency had to wait to see negative prices, but the situation quickly reversed: the WTI, which a it had dropped to -40 dollars a barrel a month ago , today it is close to $ 33. The European benchmark, the Brent, has more than doubled in value from the lows and is now trading around $ 35.
The rally left the gas market indifferent, which was once influenced by oil prices. Indeed, the falls have even accelerated, despite the exit from the lockdown and the production cuts, which are coming (albeit to a moderate extent, compared to crude). In Norway Equinor said it wanted to focus “now more than ever on value rather than volumes”, flows from Russia have been reduced for months.
As for the United States, there is now a real collapse of LNG supplies. Customers, facilitated by very flexible contracts, have canceled the order of about 45 shipments shipped in July, according to S&P Global Platts sources. The cancellations are double those recorded in June and are equivalent to almost two thirds of the gas that the US had liquefied in January, before the pandemic. Production across the ocean also begins to drop: the supply of the liquefaction terminals has been at a minimum for 7 months.