European natural gas prices are volatile due to cold weather and low supplies, but storage stocks are high, while China's gas demand is increasing.

From Morningstar: 2024-05-10 06:07:00

European natural gas prices have been volatile due to cold weather and low supplies, but storage stocks are higher than last year. EU reduced Russian fossil fuel imports by $15B/month since 2022. European countries are importing more LNG but facing competition from China. Chinese LNG demand is increasing, with record imports expected. Gas prices are likely to stay volatile due to competition with China and limited long-term contracts. Market expects prices to remain low through 2024, but rise in 2025 with increasing LNG demand. Opportunity for companies leveraging discounted gas prices like Kinder Morgan and TC Energy.



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