Europe’s Gas Buying Slows on Expectations of Further Price Crash
- Many buyers are currently in a wait-and-see mode, traders say
- Some users expect a price crash to as low as €10: MET Group
The Golar Tundra floating storage liquefied natural gas (LNG) regasification terminal vessel, right, in the port of Piombino, Italy.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Natural gas purchases needed to refill Europe’s storage sites are slower than usual for this time of year despite a recent price drop with some buyers betting on a further slump.
The continent’s benchmark futures have crashed to just a fraction of the record levels seen last summer, but that’s not been enough to stimulate purchases with consumption slow to recover from crisis lows. Confidence that prices will continue to slide is leaving many buyers waiting to fill inventories ahead of next winter.