BAKU, Azerbaijan, Jan.8
By Leman Zeynalova – Trend:
Natural gas prices will ease back in the second half of 2022, Trend reports with reference to Capital Economics, UK-based research and consulting company.
“Prices remain elevated, not helped by the recent ban on Indonesian coal exports during January. But we expect prices to ease back in the second half of this year as supply shortages ease. Although natural gas and coal prices are still experiencing widespread volatility, the big picture is that they remain elevated by past standards. That said, there is a growing divergence between natural gas prices in the US compared to elsewhere, and between coal prices in Europe and Asia,” reads the latest report released by Capital Economics.
The company analysts note that driving the divergence in natural gas markets is the more acute shortage of supply in Europe and Asia, as evidenced by extremely low stocks.
“However, there are reports that US producers are boosting LNG exports, which could weigh on prices in Europe and Asia going forward. Meanwhile, the one-month ban on Indonesian coal exports will significantly reduce coal supply in Asia. That said, the sharp rise in China’s coal production towards the tail-end of last year, which in turn has helped to shore up domestic coal stocks, should limit the upward pressure on prices,” the report says.
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