Quick Read – Cheniere Energy has dropped 23% from its March peak despite U.S.
LNG now supplying nearly 60% of Europe’s imported gas needs. – Europe’s gas storage sits roughly 140 LNG cargoes below normal safety levels, making a cold winter a stronger recovery catalyst than another geopolitical crisis. – Analysts hold a consensus Buy on Cheniere targeting $303 per share, implying 31% upside as stable contracted cash flows replace fading spot-market windfalls. – The outbreak of hostilities between the U.S. and Iran at the end of February sent energy markets into turmoil
When the Strait of Hormuz was temporarily closed, traders suddenly faced the prospect of a major disruption to global oil supplies. Brent crude briefly surged above $100 per barrel as did U.S. benchmark West Texas Intermediate (WTI) crude. Those fears have eased as ceasefire negotiations and ongoing diplomatic talks reduced the risk of a prolonged conflict.
Brent has since retreated to roughly $77 per barrel while WTI has fallen to around $73. Yet one corner of the energy market may still be benefiting from the aftershocks: U.S. liquefied natural gas exporters. Europe Is Now Dependent on American LNG Oil grabbed the headlines during the Iran conflict, but natural gas may prove to be the more important long-term story.