European natural gas prices extend losses, Citi says there is further downside potential

European natural gas prices are still about 30% higher than pre-crisis levels. However, Citigroup stated in a report that as “conflict de-escalates,” there is further room for prices to decline. Previously, Bloomberg News reported that Qatar, the largest producer in the Persian Gulf region, plans to quickly increase liquefied natural gas production once safe passage in the Strait of Hormuz is restored. Before the conflict caused near-standstill of Gulf export shipments, about one-fifth of the world’s seaborne natural gas passed through the vital Strait of Hormuz. There are still many questions regarding the implementation of the US-Iran agreement, including concerns about shipping security.