Gas prices expected to soften amidst the arrival of spring temperatures coupled with ample supply across Atlantic and Pacific Basins

Market & Trading Calls

European TTF price outlook: Bearish, as spring temperatures start easing pressure on storage withdrawal rates. Strong solar generation in Western Europe and strong LNG fundamentals will support this trend.

Asian LNG price outlook: Bearish, following downwards European TTF price expectations, underperforming Northeast Asia and Thai imports as well as ample Pacific supply.

Asian LNG – TTF spread: Stable, as both TTF and Asian LNG prices are projected to weaken. As of 26 March, Asian LNG regained its premium over TTF, trading $0.28/mmBtu higher. The spread reflects sharper week-on-week declines in TTF relative to Asian LNG, with both benchmarks projected to continue softening in the near term.

US Henry Hub price outlook: Bearish, as a warm April and the first reported net storage injection weight down on prices, despite record LNG feed gas demand and relatively weak production.