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Natural gas demand to prove resilient

Oil prices continued to fall last month on concerns about a slowing global economy and rising US-China protectionism, but we expect them to stabilise in the coming months given supply constraints. In contrast, natural gas prices have been rising recently, but this merely reflects the usual seasonal upturn in demand. The bigger picture is that supply in most natural gas markets is more than ample, which suggests prices will remain historically low, particularly in Asia and Europe.

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