Europe managed to escape severe shortages in Gas amid mild temperatures and plentiful LNG supply. However, we cannot rule out another energy crisis next winter, in the opinion of strategists at ANZ Bank.

Prices to remain volatile

“Our base case scenario is that Europe will get through another winter without any significant disruptions to energy supply. However, we think there is a 30% chance of the worst-case scenario playing out, a risk we feel the market is underestimating.”

“The uncertainty around the energy market’s outlook is expected to increase volatility in European Gas prices. Any signs that our worst-case scenario may be unfolding will likely see a re-rating by the market, leading to further upside in prices.”