Natural gas futures in Europe tumbled 7% to €33 per megawatt-hour from an over 1-month high of €36, as investors realized the previous price rally was an overreaction. European natural gas prices jumped 50% since a 2-year low hit below €23 in early June on supply concerns after extended maintenance works in Norwegian production facilities. However, while the Norwegian outages tightened supply by 1.4 billion cubic meters, weaker-than-expected demand and abundant liquefied natural gas availability have loosened it by 3 billion cubic meters in May and June, according to Goldman Sachs Group Inc. Moreover, worries about gas shipments diverting to Asia eased, as the recent price increase made it more profitable for US LNG to be sent to Europe instead of Asia in the coming months. Currently, Europe's gas storage is 72.6% full, and the European Union aims to achieve a storage inventory target of 90% by November 1. Historically, EU Natural Gas reached an all time high of 345 in March of 2022.
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