Quick Bite | European Gas Prices on the March

European natural gas prices peaked back in August 2022, however, the devasting conflict in the Middle East has caused gas futures in Europe to surge +40% over the past week, the highest level recorded in eight months.

While European stockpiles remain high, and demand is still weak, the market is concerned about the potential implications to supply with the risk of escalating geopolitical tensions and ongoing strikes at LNG facilities in Australia.

What does this mean for gas prices?

While we don’t see natural gas prices retesting the 2022 highs, it is plausible that with a fast-approaching winter in the northern hemisphere, anticipated colder temperatures should lead to an increase in natural gas demand for heating purposes, likely putting upward pressure on prices.

Source: Trading Economics



Disclaimer: Clime Asset Management Pty Limited | AFSL 221146 | ABN 72 098 420 770.  The information provided in this post is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information contained therein. Please consider the relevant disclosure document/s before investing in one of our products. Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Investors risk losing some or all of their capital invested. Past performance of financial products is not a reliable indicator of future performance or returns.