Goldman Sachs: Europe Needs Much Higher Gas Prices to Secure Winter Supply

Natural gas prices in Europe need to jump by December for European storage to fill up with enough inventory for the coming winter if the Strait of Hormuz crisis persists and keeps spot LNG prices in Asia elevated, according to Goldman Sachs. Since the Middle East crisis began, Europe has started losing the competition with Asia for spot LNG supply amid spiking prices in the absence of most Qatari LNG term volumes. The Iran war and the intensified competition from Asia came just as Europe is trying to build in the spring and summer natural gas inventories…