You often hear analysts say there will be some sort of energy reckoning in Europe. “A cold, hard winter will kill people,” they say. And that may be true...but things aren’t moving that way yet.
In the short term, there is actually a glut of natural gas sitting off the shores of Spain.
Spain is the biggest LNG importer in the Eurpoean Union and is basically at its “regasification” limit. They don’t have any more capacity to turn the super-cooled LNG back into gas. That’s basically the case with all of Europe.
The storage capacity is at 95% and higher in the two biggest markets: Germany and Italy. With nowhere to go, prices briefly traded into a negative — just like crude oil did here in 2020.
My guest for this segment, Tommy Grisafi, knows all about that day. He came on the show to talk about then and now.
