Fitch halves forecast of gas prices in Europe for 2023

The international rating agency Fitch Ratings has sharply reduced the forecast of gas prices in Europe for 2023 to $20 per thousand cubic feet from $40 in December, Report informs citing Fitch.

The agency explains the move by higher-than-expected gas reserves in EU storage facilities, buoyed by reduced demand and sufficient LNG supplies.

At the same time, Fitch's forecast for the next year was kept at the level of $20 per thousand cubic feet.

The agency lowered expectations for gas prices by the end of 2023 at the American hub Henry Hub to $3.5 per thousand cubic feet from $5 in December. In 2024, the price is also expected to be $3.5 per thousand cubic feet, while in December the forecast was $4.