Morgan Stanley Boosts 2023-24 LNG Price Forecast on Europe Demand
- Bank sees rising LNG deficit next year amid Europe’s call
- That means elevated prices, averaging $39.50/mmbtu in 2023
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Morgan Stanley raised its price estimates for liquefied natural gas in 2023 and 2024, seeing Europe’s soaring demand for the fuel intensifying global competition for supplies.
The continent looks set to cope this winter even as Russia cut gas exports to the minimum, but next year the supply crunch really could bite. Europe will need even more LNG to replace Russian volumes next summer when the continent will be refilling storage, while China’s demand will recover from lockdowns to offset lower imports from other Asian buyers. And supplies are lagging behind.