Falling gas prices might not be a feature for much longer, according to the commodities team at US bank Citi.
Since hitting a peak of €340/Mwh in August, prices have plummeted to €32.7Mwh but Citi sees a floor ahead in the summer after which forward prices will rise again led by recovering demand in Asia against a backdrop of tight supply.
In a note on Norwegian energy giant Equinor, the bank said it had upped its forecast for average European gas prices between 2024-2026 to US$13/MBtu (therms) from US$7/MBtu.
Estimates for Equinor have been cut this year by 37% due to the recent drop in gas prices, but for the 2024-26 period, the higher gas forecast means an upward average revision of 16%.
'Buy' is the view on Equinor as a consequence.