· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece here in The Economic Times or enjoy below
🗞️ Driving the news: The global natural gas prices have declined by more than 70% over the last 12 months due to various factors including geopolitical events, weather patterns, technological advancements, and global economic conditions
🔭 The context: The 2022 Russia-Ukraine conflict and export limits from key producers like the US resulted in notable price swings
• High prices also stemmed from concerns of fuel shortages due to Russia leveraging its natural gas exports against Western Europe
• Recently, however, Europe identified alternatives to Russian gas, and an unusually warm winter averted shortages
🌎 Why it matters for the planet: Natural gas prices have significant implications for economies and businesses globally
• Lower prices could lead to increased use of natural gas, impacting carbon emissions and climate change efforts
⏭️ What's next: The US has seen an increase in natural gas exports due to the reopening of the Freeport LNG terminal and is expected to continue this trend with two new LNG projects becoming operational soon
• Global demand for US LNG has increased as countries reduce their dependence on Russian oil and gas
💬 One quote: "The present demand outlook for natural gas looks challenging, as the world continues to prioritize cleaner energy sources. As key suppliers like Russia are grappling with geopolitical uncertainties, further liquidation in prices is most likely to be limited." (Hareesh V Nair, Head of Commodities at Geojit Financial Services)
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