Asian gas buyers scent lower prices

Lower crude oil prices and new LNG supplies from Australia and the US in 2015 have fuelled buyers’ hopes of lower prices.

Markets in Europe and Asia are seeing only moderate price and demand rises as the northern hemisphere winter approaches. In North America, gas stocks will remain down year on year at the start of the gas withdrawal season in November.

• Americas

  Supplies from Trinidad and Peru will struggle to match high LNG demand in Latin America

• Asia Pacific

  Demand growth is low and new supply is coming this winter

• Europe & Russia

  While Europe is expecting a mild start to the winter and has gas in storage, the risk of supply disruption remains

• Middle East & Africa

  North Africa will fall short as a supplier to Europe during winter

• Ukraine prepares for a winter of uncertainty

  As the dispute over the price of and payments for gas between Russia and Ukraine continues, so do threats to Europe’s supply over the winter season.

• US gas storage vulnerable to weather

  As North America moves into the 2014-2015 gas withdrawal season, its storage situation remains vulnerable to adverse weather conditions – with the potential for supply tightness.

• Oil price drop will feed through to gas

  The recent sharp drop in crude oil prices to around $80 per barrel could have a significant effect on long-term contract prices for gas.