Oxford Energy Podcast – Gas Quarterly – November 2021
In this podcast related to the latest OIES Quarterly Gas Review, David Ledesma discusses with Mike Fulwood and Jack Sharples the short-term gas pricing developments, with a focus on the very sharp rise in wholesale gas prices in recent months. The discussion considers the extent to which the growth in LNG demand outstripped supply at a global level, how Europe – as the ‘balancing market’ for global LNG – faced a combination of lower LNG imports, lower pipeline imports, and lower ‘domestic’ production, leaving storage to balance the market, the role of rising carbon and power prices in pushing up gas prices in Europe, and the influence of trading activities on surging European gas prices in September and October 2021. The conversation also focusses on the extent to which the factors that underpinned the gas price rally of 2021 were temporary (and thus liable to contribute to gas prices falling back in 2022) and the extent to which they are structural (supporting higher prices in the future). The podcast ends with Mike Fulwood summarising a special piece from the quarterly on LNG demand in South America.