After a record drop in global demand of about 75 billion cubic metres (bcm) in 2020, natural gas markets experienced significant supply-demand tensions in the initial months of 2021. Colder-than-expected temperatures and tighter supply led to price rallies and spikes, first in Northeast Asia in January and then in North America in February.
These winter storms provided some short-term support to natural gas demand, but market fundamentals for 2021 remain fragile. Global gas demand is expected to recover to its 2019 level, but with uncertainties regarding the recovery trajectory in fast-growing markets as compared to more mature regions, while sectoral demand is subject to a variety of risk factors including a slow rebound in economic activity and fuel switching.
This new quarterly report offers a detailed review of 2020’s gas supply and demand fundamentals and figures, an analysis of recent developments in global gas markets during the northern hemisphere’s heating season, and an updated near-term outlook for 2021.
