Natural gas demand is expected to grow in coming years, with the fastest consumption growth coming from China, The Middle East and India. Further, natural gas is projected to rise steadily as a percentage of the global fuel mix over the next 20 years to account for about 25% of the world's energy demand by 2035.
Also, non-Organization for Economic Cooperation and Development (OECD) countries' natural gas demand is anticipated to grow three times greater than in OECD economies. In parallel, U.S. Henry Hub natural gas prices traded between $3.5 per million British thermal unit (Btu) and $3.7 per million Btu in recent weeks, and exceeded the $3.75 per million Btu level for the first time since July 2013.
The rise in prices was attributed to the tropical storm in the U.S. Gulf of Mexico and to expectations of cold weather. The NYMEX gas prices are fore-cast to average $4.25 per million Btu over the next 12 months.
In parallel, Brent prices increased by 0.2% to $109.1 a barrel in October 2013. WTI prices regressed by 5.9% to $96.3 a barrel, while prices of U.S. Henry Hub natural gas rose by 2.3% to $3.6 per million Btu last month.
Goldman Sachs, Ernst & Young, Byblos Research