Since autumn 2022, the oil and natural gas markets in Europe have been characterized by a sharp drop in prices. These declines in oil and gas prices are, of course, good news, but one should not get too excited about them, Natixis analysts say.
The situation during the winter of 2023-2024 will probably be more difficult
“These low prices are related to the exceptionally mild start to winter in Europe and weak energy demand in China; major natural gas and electricity providers are charging well above market price in the short term.”
“Even with the current low level of natural gas prices in Europe, natural gas is still 6 times more expensive in Europe than in the United States; and 4 times more expensive than in 2018.”
“High energy prices are likely to return in the winter of 2023-2024, as natural gas reserves will not be able to replenish in the summer of 2023..”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
