Gas prices are set to fall by 30% in the coming months as fears of a winter energy crisis begin to subside.
That’s according to Goldman Sachs, which predicted the European benchmark will drop to 85 euros per megawatt-hour from its current level of 120 euros.
He attributed the decline to unusually warm weather, which has helped slow demand for heating, as well as a rush in shipments of liquefied natural gas to Europe. This has allowed countries to replenish storage sites before winter.
However, it seems likely that the situation will deteriorate again next summer, with prices rising to almost 250 euros at the end of July.
5 things to start the day
1) Bosses move staff into office as remote work boom reaches peak: Employers cut back on flexible work offers as economic downturn looms, survey shows
2) Crispin Odey shuts hedge fund after mini-budget bets against pound take off: Brexit-backing hedge fund boss blocks new clients from investing after asset surge
3) Fax machines will finally disappear under proposed changes to Ofcom rules – BT will no longer be legally required to provide connections
4) Authors’ fears may close the chapter on the book world’s biggest merger: The crown of Europe’s biggest media group begins to fall
5) Former Aston Martin boss ready to buy Blyth gigafactory site if battery champ fails – Andy Palmer ready to consider Northumberland plant as Britishvolt fights for survival
What happened during the night
Asian shares faltered in cautious trading on Wednesday, while the dollar edged lower as investors braced for the US Federal Reserve’s policy outcome later in the global day.
The Hang Seng Index fell 0.43 percent to 15,389.55, the Shanghai Composite Index fell 0.29 percent to 2,960.65 and the Shenzhen Composite Index of the second bourse of China fell 0.21 percent to 1,938.19.
Tokyo stocks also opened lower, with the benchmark Nikkei 225 down 0.36% to 27,580.26 in early trade, while the broader Topix index fell 0.06 % to 1,937.39.
Read the latest updates below.