For the Quarter Ending June 2023



North America

In the second quarter of 2023, the prices of natural gas exhibited a fluctuating sentiment. April witnessed a moderation in trend, with prices decreasing by 11.18 percent compared to the previous quarter. This decline was attributed to reduced power demand in the industrial sector, influenced by the US Federal Reserve's decision to raise interest rates in late March 2023 to counter inflation. Market inquiries revealed that consumer sentiments remained subdued, and industries operated at reduced capacity. However, May and June saw a bullish trend in natural gas prices. Increased demand from the industrial sector, coupled with improved consumer sentiments as inflation abated, contributed to this upswing. Downstream demand for cooling also played a positive role. By the end of June 2023, there was an 11.8 percent increase in prices compared to April. Additionally, LNG exports to Europe had a positive impact on regional natural gas pricing, with prices settling at USD 2433 per 1000MMBtu Ex-Louisiana.

APAC

In the second quarter of 2023, natural gas prices in the Asia-Pacific (APAC) region displayed a dynamic stance. April saw a 6.0 percent decline, influenced by global market dynamics. Natural gas inventories remained sufficient to meet domestic needs, and Russian discounts contributed to the price decrease. Supply chains for natural gas remained resilient. May and June witnessed a bullish trend as heating requirements in residential and commercial sectors improved, although industrial demand remained weak. By the end of June 2023, prices had increased by 10.3 percent. Economic challenges, such as the real estate sector crisis and the US-China trade war, kept Chinese demand suppressed. In India, natural gas prices followed a similar trend, with improvements by the end of June. The pricing for natural gas settled at USD 2433 per 1000MMBtu Ex-Shanghai in June 2023.

Get Real Time Prices of Natural Gas: https://www.chemanalyst.com/Pricing-data/natural-gas-1339

Europe

In the second quarter of 2023, natural gas prices in Europe adopted a bearish stance. April witnessed a 6.16 percent decline due to reduced demand from downstream industries and the impact of the Russia-Ukraine War. Strategic reserves of natural gas were adequate, and LNG imports from the US negatively influenced pricing. Imports from Norway increased by 10 percent, easing pricing in Germany. May and June experienced a significant drop in natural gas prices by 27.30 percent. Supply chains shifted towards North Africa, remaining resilient. Economic indicators, such as a 0.1% decline in GDP and a drop in Germany's PMI manufacturing to 38.8 in June, signaled weak economic activities. While residential and commercial demands improved, industrial demand remained weak. Natural gas prices in Europe settled at EUR 30372 per 1000MWh FD Hamburg in June 2023.

MENA

During the second quarter of 2023, natural gas prices in the Middle East and North Africa (MENA) region displayed a variable sentiment. April witnessed a moderating trend, with a 10 percent decline in prices due to lower power demand from importers and polymer industries amid an economic slowdown in North America, Europe, and the Asia-Pacific. Consumer sentiments remained suppressed, and industries operated at reduced capacity. Increased supply from Fadhili gas production contributed to the supply side. May and June, however, witnessed a bullish trend in natural gas pricing. Industrial demand increased, aided by improving consumer sentiments and increased downstream demand for power. By the end of June 2023, prices had increased by 13.8 percent over April. Saudi Arabia's decision to extend OPEC+ cuts till August further impacted spot prices, with downstream power and chemical industry inventories remaining depleted. Natural gas prices Ex-Riyadh settled at USD 2472 per 1000MMBtu by the end of June 2023.




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