As coronavirus lockdowns continue, energy prices in Europe have slumped amid predictions of a long-term fall in demand.
Reuters reports the outbreak of COVID-19 has set off a sharp slump in demand for energy across Europe in the short term, with many energy-hungry manufacturing sectors slowing production rates.
These combined falls have seen gas producers and operators, like Norway’s Equinor, cancel or delay maintenance at its gas plants and processing facilities.
Spot LNG price rises in Asia for three straight weeks are offering some hope of outside markets picking up the slack, but for Europe the local market outlook is down.
Despite the drop in energy prices and global demand for energy, Saudi Arabia said earlier this month it is preparing to increasing its oil production.
The country’s government ordered state oil business Aramco to up its oil production while ADNOC, Abu Dhabi’s oil and gas company, says it will also increase its oil production to four million barrels a day, a rise of around 25%.
Meanwhile, Norwegian consultancy Rystad Energy is predicting that over the next two months, demand for European energy could fall more than 4% with growth throttled to as low as 0.36%.
With demand slumping, other analysts are forecasting a fall in prices of between 5-10% even after the Coronavirus lockdowns are lifted.