Tuesday, 02 January 2024 12:17 GMT

Swiss Bank UBS Cuts Natural Gas Price Forecast


(MENAFN- Yolo Wire) Analysts at Swiss bank %UBSGroup (NYSE: $UBS) have lowered their %NaturalGas price forecast, citing global risks and growing macroeconomic uncertainty.

According to UBS, Liquefied Natural Gas (%LNG ) capacity is likely to outpace demand growth, exerting downward pressure on prices in the medium-term.

As such, UBS is forecasting that the price of natural gas will decline to ~$13 U.S. per mmBtu in 2025, to $11.50 U.S. in 2026, and $10.50 U.S. in 2027.

By 2030, UBS sees natural gas prices falling as low as $8 U.S.

The new forecast puts UBS broadly inline with the consensus estimate among commodity analysts, which assumes a 30% decline in natural gas prices to $9 U.S. per mmbtu by 2027 and staying flat through 2030.

In its report, the Swiss bank singled out several energy companies that could be impacted by natural gas prices, including %Equinor (NYSE: $EQNR), %Shell (NYSE: $SHEL), and %TotalEnergies (NYSE: $TTE).

The stock of UBS has risen 35% this year to trade at $40.90 U.S. per share in New York.

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