BAKU, Azerbaijan, January 10. In a significant turn of events, the World Bank reports a considerable decline in natural gas and coal prices throughout 2023, Trend reports.
This trend emerges as European countries strategically reduce energy demand while maintaining gas inventories at an impressive 90 percent of their storage capacity. Projections indicate a continued downward trajectory for natural gas prices into 2024 and 2025, fueled by increased production and a surge in liquefied natural gas exports.
The observed drop in prices, primarily driven by European energy dynamics, sets the stage for a potential further decrease, aligning with global market shifts.
However, the World Bank also highlights key upside risks that could influence gas prices. These include potential supply disruptions from the Middle East, intricately linked to ongoing conflicts in the region, as well as the variable of a colder-than-usual winter in Europe.
As the world anticipates shifts in energy markets, the World Bank's insights offer a nuanced perspective, emphasizing the delicate balance between global production dynamics and regional factors that could impact natural gas prices in the coming years.
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