Since autumn 2022, oil and natural gas markets in Europe have been characterised by a sharp fall in prices. These declines in oil and gas prices are of course good news, but we should not be overly enthusiastic about them, in the opinion of analysts at Natixis.

The situation during the winter of 2023-2024 is likely to be more difficult

“These low prices are linked to the exceptionally mild start to the winter in Europe and weak energy demand in China; the major natural gas and electricity suppliers are charging well above the short-term market price.”

“Even at the current low level of natural gas prices in Europe, natural gas remains 6 times more expensive in Europe than in the United States; and 4 times more expensive than in 2018.”

“High energy prices are likely to return in the winter of 2023-2024, as natural gas stocks cannot be replenished in the summer of 2023.”