Global natural gas markets record major demand shock
2020 is on its way to experiencing the largest recorded demand shock in the history of global natural gas markets, underlines the Gas 2020 report, issued by the International Energy Agency (IEA).
Gas consumption is expected to fall by 4% in 2020, under the successive impacts of lower heating demand from the warm winter, the implementation of lockdown measures in almost all countries to slow the spread of the virus, and a lower level of activity caused by the COVID-19 induced macroeconomic crisis.
As of early June, all major gas markets are experiencing a fall in demand or sluggish growth at best as is the case of China.
Europe is the hardest hit market, with a 7% year-on-year decline so far in 2020. The global oversupply is pushing major natural gas spot indices to historic lows, while the oil and gas industry is cutting spending and postponing or cancelling some investment decisions to make up for the severe shortfall in revenue.
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