Weekly market updates 

UK and European energy markets shift down sharply on warmer weather conditions and firm LNG supply. EU storage has shifted below 76%, compared to around 90% this time last year, but UK and European gas futures have continued their downwards trend as warmer forecasts for December and the first half of January offset concerns over significant depletion this winter. Additionally, LNG imports have been strong, with October volumes up 43% and November volumes 38%, with Asian demand weaker on strong stocks, increased Chinese domestic production and stronger Japanese nuclear output. The spread between Asian and European benchmarks began widening last week but a sharp shift down towards the back end of the week narrowed the premium, which alongside higher freight costs to Asia maintained strong import prospects for Europe. The market has opened bearish today but scope for further downside could be limited as European markets approach levels which decrease US LNG export profitability. a full agreement in place before Christmas. Members of the European Parliament (MEPs) and the EU Council have disagreed on provisions for Central Europe, with the MEPs removing a clause that would have granted more time to landlocked countries to phase-out short-term supply contracts with Russia. This has been a key sticking point in discussions around Russian fossil fuels. Some industry figures have highlighted the need for the Vertical Corridor, which would connect Central and Southeast Europe, giving Central Europe access to LNG import facilities. However, they have also stressed that the driving force of the project would be the US who would need to provide necessary quantities of LNG. Whilst the Russian gas exit could remove the geopolitical risk associated with relying on imports from what many in Europe consider a hostile nation, it also risk becoming strongly reliant on one key producer: the US.