Europe must secure higher natural gas prices by December to attract sufficient LNG supply amid Middle East tensions and Asian competition.
European natural gas prices must rise significantly by December to ensure adequate winter inventories if the Strait of Hormuz crisis continues, Goldman Sachs said. Elevated spot LNG prices in Asia have shifted supply away from Europe, complicating efforts to build stockpiles this spring and summer.
The Middle East conflict has intensified competition for spot LNG, with Asia outbidding Europe as Qatari term volumes remain limited. Europe’s storage levels are under pressure as it struggles to secure supply ahead of winter.
No immediate market reaction was specified, but the report highlights growing concerns over energy security and price volatility in the region.