As of the 1st of May the official gas storage injection year will begin with European gas storages at an all-time low.
2013 saw the coldest Q1 and April since 1986 in the UK and gas storage levels across Europe are hitting record lows. Germany, Austria, France, Italy and the UK are the main culprits in terms of requesting additional storage withdrawals with levels far below what they were last year. It is expected that an additional 83mcm a day will be needed to fill the storage capacity. This additional volume of gas equates to the same amount used by domestic gas customers in the UK over the same period of time. An upturn in Russian gas flows is thought to be able to cover the extra demand requirements as flows are expected to rise significantly when compared to last year.
In other news the current price of oil is $102.8/bbl and has stabilised after making a series of losses in recent weeks. The South Hook LNG terminal in the UK will also see improved output and it is believed that flows will be at their highest since August 2012.
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