Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Global gas prices could fall 50% on “resilient supply” - Citi

AuthorBarani Krishnan
Published 06/07/2023, 04:35 PM
© Reuters.

Investing.com - Global gas prices could fall as much as 50% year-on-year as weak demand and resilient supply force European and Asian markets for the fuel to experience the sort of downside already present in U.S. natural gas, analyst at Citigroup (NYSE:C) said in a note issued Wednesday.

“Supply is resilient:  global  oil  and  U.S.  natural  gas  production  is  still  climbing  while remaining flat for global LNG,” Citi’s analysts said, referring to liquefied natural gas. 

“While oil prices could be range-bound between $72 and $90/bbl  even  with  the  latest  Saudi  production  cut,  global  natural  gas  and  coal  prices  have  more  downside,” they added. 

The Citi note said its base case for the third quarter was gas on the U.S. Henry Hub averaging $2.20 per million metric British thermal units; $3.80 on Dutch exchange TTF and $4.80 for the JKM marker for Japan and Korea.

“For  TTF  and  JKM,  that  would  be  ~50%  below  current  forwards,” said Citi, projecting levels for the two that could match Henry Hub prices, which are already down nearly 50% on the year.

Latest comments

When analysis say sometthing go and bet for opposite
I think it’s unfair to get just a portion of the quote from somebody else and use it for an headlines on your article. Misleading there !
In the US, producers have cut rig counts significantly. I know in the Haynesville especially.
No matter what it costs you still get the same buzz
In less than a week Texas , Lousiana , Oklahoma, Kansas , Arkansas , Mississippi , Albabama , western Tenesse , Georgia and Florida will be hitted by a hot wave that will rise temperatures much above 90 / 95 ° and in few more days above 100 / 105° F !!
Thanks for that, John. Let's see how it unfolds.
How does it affect Natural Gas prices? Can you explain?
they have shorted has gas ... desperate to get it down so trying to make news ..stupid author
heavily shorted..
Yo, Pradeep: Go bark up the correct tree -- Citi.
Will my nat gas bill ever go down? My rate hasn't budged. The gas company must be making a fortune. There should be Congressional investigation.
Good luck on getting a congressional investigation. With the current Congress, both Republican and Democrat, they’re only interested in filling their own pockets not yours.
I hear you, Brad. Even in December, when HH was well beyond the highs, PSEG was going higher! LOL :)
With AI everything else is irrelevant
the world is awash in nat gas ......
You know no one produce anything with not profit. There is a thing we call it producer cost lol
Hey CC, no one said they weren't making money. But that said, you are oversimplifying the logic of profit, without which, you deem there would be no business done. You probably do not know the dozens of shale operators who ran negative balance sheets for months just to stay in business.
and you expect it will go like it forever ahaha bro close your shorts you are desperate
Fire that analyst immediately
Barani,I bailed Citi out in case you forgot. That said, the article is valuable.
We all did the bail out, mate :) But the faults of their prop teams do not invalidate their work on research. Thanks for the feedback.
Yes you tell me natgas will see 1.2 even this amount of rig count drop and lng terminals are back. You should be fired too
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.