Spring has just begun, but analysts are already eyeing winter amid worries about gas supplies. While gas contracts are fairly stable in the short term, the most expensive contracts for the rest of the year are up nine percent over the past two weeks.
Bloomberg writes that the increase in long-term gas contracts shows that gas supply worries have not yet been appeased. After the Russian invasion of Ukraine, Western powers want to depend as little as possible on raw materials supplied by Russia. As a result, the price of gas rose rapidly and the energy supply was uncertain for a long time before last winter.
There is, however, great short-term security of supply. Stocks are well filled and demand is relatively low due to the mild weather. But long-term analysts are hesitant. For example, gas demand from Asia is closely monitored, as is a possible increase in demand from the industrial sector.
“August stock filled one hundred percent”
So far, gas contract prices have dropped significantly. Since the beginning of the year, prices have fallen by an average of 30%. But this is mainly due to the rapidly falling prices of short-term gas contracts. Because of this decrease, there is a good chance that countries can already stock up on gas for the winter. “If demand remains as weak as it has been recently and liquefied natural gas imports remain at current levels, inventories will be 100% filled by the end of August,” Morgan Stanley researchers said.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
