LONDON: Global prices of gas and liquefied natural gas (LNG) are expected to remain relatively weak in 2024, with demand subdued due to high storage levels in Europe and Asia and a mild Northern Hemisphere winter, consultancy Wood Mackenzie says.

       “Wood Mackenzie has been forecasting lower 2024 prices for much of last year, especially compared to forward curves, amid weak market fundamental expectations,” Massimo Di Odoardo, vice-president of Gas Research at Wood Mackenzie, said.

       “Global LNG supply growth will remain limited at 14 million tonnes, but with Asian LNG demand still weak, competition for LNG is unlikely to heat up,” he added.

       LNG prices dropped 58% in 2023 to levels slightly below US$12 per million British thermal units (mmBtu) and fell further in the first two weeks of January to US$10.025 yesterday, their lowest level since June 2023.

       In Europe, gas prices have fallen 45% to US$10 per mmBtu in the past three months, the report said, expecting market sentiment for gas and LNG to remain bearish into 2024.

       Gas demand in Europe fell by 7% in 2023 as mild weather reduced consumption, the report said.

       “Normal weather dynamics and a possible economic rebound would support demand, however with renewable supply increasing by more than 100 terra watt hours and nuclear production in France continuing to come back, European gas demand will remain flat at best.” — Reuters

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