Natural gas prices are falling. It is currently at $1.83 per MMBtu (million British thermal units), citing A decrease of about 22 percent since the beginning of the year.
Reasons? After a warmer than usual winter The world suffers from an oversupply of raw materials. Moderate temperatures weakened demand for heating. As Morgan Stanley points out in an analysis cited by Bloomberg, stocks will rise to unprecedented levels. Infrastructure with a production capacity of more than 150 million tons of LNG per year is under construction. The current market is 400 million tons per year.
We expect gas market oversupply to reach multi-decade highs in the coming years,” say commodity analysts from Morgan Stanley.
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Gas prices are falling. 'Europe will benefit'
According to Zhi However, this is not the only reason. Prices have also fallen since October due to higher than average inventories. The trend will be favorable, among others: Poland.
Chung predicted that European countries would benefit most from lower prices.
This is crucial after Russia stopped supplies, LNG imports to Europe rose to 35%. Total births. Most of them are purchased at spot prices. Therefore, lower prices help maintain the attractiveness of imported fuel.
Natural gas has become cheaper. During the warmest winter ever
The United States, where most of the world's liquefied natural gas is consumed, recorded its warmest winter on record. In Europe, temperatures were also near all-time highs. Likewise in Japan, where the average temperature this winter was 1.27 degrees Celsius above the record. This is the second warmest winter on record.
Morgan Stanley notes that other major beneficiaries of temperature change are India and Southeast Asia. India and Thailand, in particular, benefit from lower LNG prices, with imported gas accounting for between 30% and 50%. Power supply.
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