Gas Traders Should Brace For 'Extremely Volatile' Stretch, Says Citi - The Wall Street Journal
Gas Traders Should Brace For 'Extremely Volatile' Stretch, Says Citi
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Natural-gas prices have whipped around of late. There's more in store, according to Citigroup analysts, who say European and Asian prices "should be extremely volatile" over the next few weeks.
Threatened strikes at three massive Australian gas-export plants owned by Chevron (CVX) and Woodside Energy (AU:WDS) have set the market on edge. Industrial action could take out a tenth of the world's liquefied-natural gas supply.
Traders think workers are ultimately unlikely to walk out. Even so, LNG supplies will tighten until any industrial action is called off, as companies hoard gas protectively, stashing some of it on tankers at sea, the analysts say.
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