Europe and Asia are facing an oversupply of liquefied natural gas (LNG), and prices for this fuel will drop over the next few weeks. In this respect informs Bloomberg agency.
The world market is becoming oversaturated with natural gas and prices will fall in both Europe and Asia, at least in the next few weeks. At the same time, the current situation in 2022, when energy market prices skyrocket on the backdrop of the conflict in Ukraine, will be rare.
Market experts evaluated that Europe was able to survive the heating season with a certain amount of gas residues in the warehouses, thanks to the warm winter. At the same time, studies on filling gas storage facilities in Europe in 2023 may be completed by the end of August, as there are many alternative suppliers.
Analysts thought that the attention of market participants was now drawn to the weather next summer. For example, severe temperature fluctuations can cause an increase in fuel consumption. In addition, LNG competition may intensify towards the end of the third quarter, when many importers start preparing for winter.
In early April, former Austrian Foreign Minister Karin Kneissl posted on her Twitter page. WroteImporters in the European Union (EU) will face great difficulties if the US bans LNG exports.