Rystad: Fundamentally, we still see a tight natural gas market

Analysts at energy consultancy Rystad Energy expect the European natural gas market to remain tight through the winter of 2023/2024. They also believe that prices for the winter months will rise ahead of the winter season. As for summer prices, however, they do not rule out a decline due to the currently very healthy levels of natural gas storage in both Europe and Asia.

Despite the general decline in wholesale energy commodity prices, which fell to two-year lows in the second half of May, some energy companies warn that Europe is still not out of the energy crisis. One of them is consultancy Rystad Energy.

Rystad analysts say that developments in the gas market were significantly influenced by mild weather in the Northern Hemisphere during the past winter season, subdued demand for energy commodities due to lower economic activity, and strong LNG (liquefied natural gas) supply.

Natural gas storage levels are currently healthy in both Europe and Asia. European gas storage facilities are already almost 75% full.