Europe’s Move to Shore Up Its Gas Supply Helped Ease Prices. That Could Provide an Opportunity for Investors.
Expectations for global demand destruction have also contributed to the price pullback. Recent inflation readings in the U.S., Europe, and the United Kingdom increase the likelihood of continued central bank interest-rate hikes, says Steve Kolano, managing director at investment and financial-advice firm Integrated Family Office. That will slow economic growth and, potentially, energy demand, he says. On Sept. 21, the Federal Reserve approved its third straight interest-rate hike.
Still, Kolano believes the drop in natural-gas prices offers a potential opportunity for investors ahead of winter, given the nature of energy demand in Europe and globally. “Should the winter be warmer than normal, supplies may begin to build and ease pricing pressures,” he says.
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