A downward adjustment in Russian gas flows at the Velke Kapusany entry point (-15 mm cm/day) triggered a rebound in European gas prices on Wednesday after two sessions of strong losses. Prospects of a normalization of temperatures by the end of next week in Western Europe and strong Henry Hub prices in the US may have also played into the bullish sentiment.
A further 9 mm cm/day downward adjustment in nominations at the Velke Kapusany entry point and a further downward revision in temperature forecasts for Western Europe for the end of next week and the week after (with temperatures now close to seasonal norms) could continue to provide some support to prompt gas prices in Europe today. The absence of de-escalation signs in the Russia-Ukraine conflict could also provide some support to the curve, notably as the US announced yesterday the deployment of 3,000 troops in Poland, Germany and Romania to strengthen Nato’s defences in Europe while new satellite images show a further Russian military build-up in Belarus, Crimea and Western Russia near the Donbass region.
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