BogTar201213
The average over five years for this date stands at 90%.
If the Strait of Hormuz stays shut for an additional two months, storage capacities will dip under 70%, the analysts add.
Historically low gas inventory levels in Europe, along with renewed supply interruptions through the Strait of Hormuz, have driven spot prices over 50% higher than their June lows, jeopardizing supply security for the winter of 2026/27.
Prices will keep increasing, and certain developing Asian economies, already struggling with elevated LNG prices, will experience decreased demand. The analysts point out that affluent nations can manage these expenses, whereas low-income nations cannot.
WoodMac highlights three concurrent pressures. EU UGS stocks are slightly above 50%, marking one of the lowest recorded levels. LNG consumption in Asia has resumed 2025 figures, even with the reduction of Qatari supplies, increasing rivalry with Europe for accessible shipments.
Moreover, restricted expansion in new LNG supplies is anticipated in the upcoming 12 months: Qatari facilities are unlikely to completely use their capacity until the latter half of 2027.
Analysts believe that low stock levels in Europe, robust demand in Asia, and restricted growth in new LNG supplies almost ensure elevated prices this winter and extending into 2027.
source: woodmac.com
If the Strait of Hormuz stays shut for an additional two months, storage capacities will dip under 70%, the analysts add.
Historically low gas inventory levels in Europe, along with renewed supply interruptions through the Strait of Hormuz, have driven spot prices over 50% higher than their June lows, jeopardizing supply security for the winter of 2026/27.
Prices will keep increasing, and certain developing Asian economies, already struggling with elevated LNG prices, will experience decreased demand. The analysts point out that affluent nations can manage these expenses, whereas low-income nations cannot.
WoodMac highlights three concurrent pressures. EU UGS stocks are slightly above 50%, marking one of the lowest recorded levels. LNG consumption in Asia has resumed 2025 figures, even with the reduction of Qatari supplies, increasing rivalry with Europe for accessible shipments.
Moreover, restricted expansion in new LNG supplies is anticipated in the upcoming 12 months: Qatari facilities are unlikely to completely use their capacity until the latter half of 2027.
Analysts believe that low stock levels in Europe, robust demand in Asia, and restricted growth in new LNG supplies almost ensure elevated prices this winter and extending into 2027.
source: woodmac.com