Bloomberg: European Gas Markets Poised to Tighten Next Year, Bernstein Says

Warmer weather in December in Europe masked falling North Sea gas output, setting the market up for a tightening in the coming year, Sanford C. Bernstein & Co. said.

Europe may have a shortfall of 15 billion cubic meters in the fourth quarter as North Sea production drops by 6.5 billion cubic meters, spurring companies to expand inventories, imports of liquefied natural gas and pipeline volumes from Russia, said analysts led by Oswald Clint in a note today. Output fell by 22 percent last year as the U.K. raised taxes, Bernstein said. MORE