NYC-based PIRA Energy Group believes that on the pure LNG spot price side, there is little support in Europe or Asia, while on the oil-indexed contract level, oil prices have stabilized and are expected to rise in 2H, particularly as U.S. summer driving season kicks off.
In the US, weekly fundamentals for June continue to look more positive. Though Thursday’s storage report ended a three-week streak of triple-digit injections, PIRA’s balances indicate injections to be lower for the next two reports.
PIRA highlighted that the next 24 months are a period of transition in terms of how Europe balances its demand and how this changing nature of gas supply will need to be priced.
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