BAKU, Azerbaijan, June 17. In the first quarter of 2024, natural gas prices fell sharply by nearly 28 percent compared to the previous quarter, Trend reports via the World Bank.
This decline was attributed to ample production, mild winter weather reducing heating demand, and high inventory levels.
However, by March, U.S. natural gas prices hit a nearly 30-year low. The situation reversed in May as prices surged, driven partly by increased liquefied natural gas (LNG) exports from the United States. This export growth bolstered prices amid expectations of expanding liquefaction capacity, which will allow more U.S. supplies to enter global markets.
Looking ahead, the World Bank anticipates U.S. natural gas prices to stabilize in the near term before rising in 2025. The expansion of LNG infrastructure is expected to support this increase by diverting more gas supplies to international markets.
Meanwhile, European natural gas prices rebounded in the second quarter of 2024 due to persistent supply risks linked to ongoing conflicts in the region. Despite the projected growth in U.S. LNG exports, average European gas prices are forecasted to rise by 11 percent in 2025. This increase is driven by anticipated industrial activity recovery, boosting demand across the continent.
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