Prices of natural gas in Europe have dipped once more following Tuesday’s surge, with Goldman Sachs asserting that a fall in demand will neutralize any effects from the disruption of supply in Norway.
Even as several Norwegian production plants extended their maintenance works till mid-July, key price indicators dropped by as much as 7.6%.
These production interruptions initially worried traders, prompting a 16% price increase on Tuesday.
Comparable short-term supply issues have reintroduced volatility, leading to a roughly 30% price increase this month, after falling to a two-year low in early June.
The prolonged interruptions in Norway have reduced the supply of gas by approximately 1.4 billion cubic meters, according to Goldman Sachs.
Nevertheless, the bank pointed out that the combination of lower-than-anticipated demand and abundant liquefied natural gas increased the gas supply by 3 billion cubic meters in May and June.
Lastly, Dutch front-month gas, the European benchmark, saw a decrease of 6% to less than €34 per megawatt-hour.
