Warm weather and increased demand for air conditioning are expected to boost the Henry Hub price in the United States.
The NBP day-ahead has fallen by just 3% over the past week, dropping to roughly 29.5 p/th, with similar declines seen on the continent.
The NBP day-ahead was around 31 p/th on Tuesday, close to the average it has maintained for the past week.
Analysis & Forecasts
Focus on macroeconomic trends, gas demand & production, storage, prices and trade movements
Analysis of how gas prices respond to the price of other fuels, such as coal, renewables and nuclear
Oil market outlook
A brief analysis of the direction of crude oil prices and of oil product crack spreads
South Korea’s gas demand and LNG imports have been in decline, and although they will continue to fall this year, demand could grow between now and the end of the decade.
Trinidad and Peru are exploring new LNG markets as competition from Australia and the US ratchets up. However, attracting upstream investment could be a more significant challenge.
Contract flexibility and stakes in export projects lie at the heart of Qatar’s LNG strategy as it defends its market share amid intense competition from the likes of Australia.
Europe’s supply/demand gap is set to widen, making the region more dependent on imports. But with strong piped supplies expected to grow, the market for LNG could be limited.
The Middle East and Africa region’s LNG imports are expected to see double-digit growth in 2016, resulting in the growing popularity of floating LNG import solutions and increased participation by portfolio players.1 February 2016
Oil and gas companies are finding it increasingly difficult to obtain finance for upstream projects, but a lack of investment now could spell a supply shock later.
Saudi Arabia is continuing to pump at full throttle, and the appointment of a new oil minister is unlikely to reverse the kingdom’s policy any time soon.
The advent of LNG exports from the United States offers a window of opportunity for buyers looking for a stable gas price.