Is the global supply-demand balance currently hanging by a thread?

November 08, 202314:00GMT

Is the global supply-demand balance currently hanging by a thread?

According to the International Energy Agency, as winter approaches, a combination of favourable LNG market dynamics, robust pipeline deliveries from suppliers, lower demand, and policy actions has given Europe a chance to sidestep some of the worst immediate impacts of steep cuts to natural gas deliveries. 

Furthermore, mild weather, healthy storage levels and strong LNG supply have led to a significant fall in some natural gas price markers. Leading up to the World LNG Summit & Awards, industry experts from BRG Energy & Climate and RWE Supply & Trading discussed whether the global supply-demand balance is currently hanging by a thread. 

Key takeaway points

Optimism

Reasons to be optimistic: Have we seen the worst in terms of price spikes, volatility and illiquidity?

Risks

What present risks should we watch out for and how might they effect the supply-demand balance in the short term?

Trends

New trends emerging in supply capacity additions

Growth

Where do we see the long-term commitment to LNG demand growth?

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