Europe is experiencing a natural gas deficit. So, traders have to monitor long-term weather forecasts. When the market situation is unpredictable, a warm sunny day is the only hope left. Only good weather may settle the panic that blasted in the energy market.
The CEO of Vitol, the world's largest independent oil trader, Russell Hardy is among those keeping a close eye on weather forecasts. He believes that mild winters in the northern hemisphere can calm markets. Energy markets were in despair, Hardy said in his speech at the Gastec Conference. He added that the weather conditions would be a crucial factor, and a warm winter may ease prices. Europe is expected to meet the winter with natural gas storage facilities filled by 78%. If the winter is cold, the current load level is not enough, which means that the situation may be beyond control. The expert noted that in winter, gas production would not cover demand in the northern hemisphere, so it was necessary to stockpile gas as reduced stockpiles may destabilize the energy market.
Didier Holleaux, the executive vice president of the French company Engie SA, said that “little can be done about high gas prices for now as remedial steps take months to have any impact.” He added that “we hope the start of the winter will not be too cold in the northern hemisphere. Otherwise, we are in trouble.”
Niek den Hollander, the Uniper CEO, stated that one of the reasons why Russia cannot increase natural gas exports to Europe is the need to replenish its gas inventories.
