BAKU, Azerbaijan, September 20. US liquefied natural gas can buffer but not cure short-term global tightness, and infrastructure bottlenecks, policies and regulations prevent further loosening, Trend reports with reference to Norway-based Equinor company.
The company notes in its latest report that the short-term focus is on efficiencies and alternatives to ease the burden of tight balances.
“The Nord Stream 2 gas pipeline between Russia and Germany would have provided some supply relief, but the project has been halted indefinitely. This has been replaced by increased tightness and reduced flexibility, as rising hostilities between the East and the West disrupt gas flows with global consequences. With very limited options to increase short-term gas supply, global gas markets are volatile and highly sensitive to disruptions in supply and seasonal variations in demand,” the report reads.
As for the oil market, Equinor expects volatility to remain high in the short term.
“Sanctions on Russian oil following the invasion of Ukraine, Opec+ failing to deliver on their agreed production as well as supply disruptions in other regions, have led to fears of supply shortages. A downward revision of global economic growth, continued lockdowns in China and high prices lead to decreased demand. Market volatility is expected to remain high in the short term, with considerable upside and downside risk, dependent on how events unfold,” says the company.
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