PODCAST: Petrochemicals may see more gas price volatility in winter 2022
Will Beacham
04-Jan-2022
BARCELONA (ICIS)–Petrochemical producers, especially in Europe, may experience more gas price volatility in winter 2022 as storage levels are much lower than usual.
- Unprecedented volatility in European gas prices
- Prices have now collapsed, but still above long-term average
- Warmer winter weather reducing demand
- Flows from Russia, temperature impact prices
- Europe gas storage only 50% full, usually around 70%
- Any cold spell could send prices rocketing
- More liquefied natural gas (LNG) cargoes heading to Europe
- Industrial, chemicals demand stable
- Growth of electric vehicles will drive refinery closures, lack of naphtha
- Deflation risk in 2022
- Supply chains may normalise, with rising inventories
- Slowing China biggest risk to global deflation
In this Think Tank podcast, Will Beacham interviews Alice Casagni, ICIS deputy editor – European Spot Gas Markets, ICIS senior consultant Asia John Richardson and Paul Hodges, chairman of New Normal Consulting.
Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.
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