Analysts and traders told Reuters on May 24,2020 that European gas prices could soon turn negative as the blockade dampens demand and the commodity's storage space is running out. "It's hard to say whether this will happen today or next week ," a European gas dealer told Reuters. Natural gas demand in Europe has been very low in recent days, but the supply of natural gas is very strong, so the price of natural gas is likely to be close to negative.

Dutch TTF center and UK wholesale gas prices recently fell 20-30% to single-digit lows. Because European gas demand is still very weak and gas storage space is close to saturation, European gas prices may be negative. 

UK gas prices turned negative in October 2006, when new pipelines from Norway increased gas supplies, while UK gas storage capacity reached 96%.

Wood Mackenzie says UK gas demand and gas inventories look particularly weak.

"The industrial and power sectors account for most of Britain's summer gas demand, demand ," said Adrian Corino, senior analyst at Wood Mackenzie's gas team. 

The UK's gas storage space could burst in early June, Corino said.

"Because UK summer demand is expected to be below average, combined with storage space constraints, it is clear that there is very little room for additional gas supply ," he said. Liquefied natural gas exporters who want to ship natural gas goods to the UK market have the biggest losses. Europe will never have more storage space ."

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