Prices keep going up but there are reasons to believe they are close to their peak.
Europe is grappling with an ongoing energy crisis as oil and gas markets face pressure from conflicts and a weakened global economy. Natural gas prices surged 15% in October, reaching an eight-month high due to Middle East tensions. However, the direction of gas markets is uncertain, hinging on geopolitical developments and winter weather. Despite European gas inventories being 96% full and above seasonal averages, weather shifts or a potential economic slowdown could impact gas demand.
The Eurozone’s economic slowdown, evident in declining PMI figures, and reduced gas consumption in Germany raise concerns. Hedge funds’ selling of gas futures signals market contraction, though a slight consumption increase in October adds complexity. This uncertainty poses challenges for consumers, impacting budgets, inflation, and potentially affecting retail sectors. Businesses are advised to adopt strategic hedging and careful planning amid market volatility.
