RE: Chariot @ Africa Oil week5 Oct 2022 13:19
BDC, it’s a fair question, and I’m basing my comment on the fact that storage capacity of gas is around 85% for the coming Winter months, which is good, and that we will see price caps on wholesale gas…therefore I’m anticipating a correction to the price, which is already happening.
Once current supplies deplete (and as you already mentioned storage is limited), we may see prices rise again into mid 2023, but only if we are still in this current crisis.
My other consideration is more intuitive, and that a lot can happen by then geo politically; but whatever, the West is not going back to Russian gas, so relying on Russia for cheap gas is a thing of the past, therefore solutions have to be found elsewhere.
I’m hoping that Chariot are not driving too hard a bargain with stakeholders, and that we see an SP above 53p before Christmas, that’s on my Santa list anyway.