Natural gas (LNG) prices will slump 30% in the coming months

According to Goldman Sachs, natural gas prices will fall 30% in the next months due to mild weather and an increase in supplies. This helps to alleviate fears of a winter crisis.

According to Wall Street Bank, benchmark European prices are expected to drop to EUR85 per megawatt – hour in the first quarter of 2023 from their current level of EUR120.

This is because unseasonably warm temperatures delay the heating season. Meanwhile, a glut in liquefied natural gas (LNG) shipments to Europe has allowed countries to replenish storage sites.

This has helped to ease concerns about blackouts and shortages this winter with prices falling from their August peak of EUR340.

Further falls in wholesale prices could also lead to lower energy bills, which would provide relief for squeezed households as well as businesses.

Goldman however warned that prices will rise again next winter as countries attempt to replenish storage sites for the winter. The benchmark is expected to rise to just below EUR250 by July’s end, according to Goldman.

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

Weekly Newsletter

Sign up to receive exclusive stock market content in your inbox, once a week.

We don’t spam! Read our privacy policy for more info.