Goldman Sachs Forecasted Higher Global Gas Prices
The firm warned that Persian Gulf shipping constraints could force industrial sectors to slash energy demand.
Updated on Sept. 21, 2026 in Oil and Gas
Live Poll
Do you expect energy costs in your area to rise over the coming months?
Goldman Sachs projected that natural gas prices could surge by year-end due to export limitations in the Persian Gulf. If supply remains constrained, TTF gas in Europe and JKM gas in Asia could rise significantly above current base case levels.
Why it matters
Rising energy costs create significant inflation risks, potentially forcing central banks to consider interest rate hikes. Elevated prices threaten industrial output as firms in India and China seek to mitigate costs through demand cuts or coal switching.
Goldman Sachs projects TTF gas at 105 euros per MWh and JKM gas at $35 per MMBtu by year-end if supply flows fail to improve. Industrial demand destruction in regions like India is expected to trigger once prices exceed the $30 per MMBtu threshold.
The players
Goldman Sachs
This global financial institution provides investment banking, securities, and investment management services.
United States Central Command
This combatant command oversees military operations and intelligence in the Middle East and Central Asia.
European Central Bank
This is the central bank responsible for the monetary policy of the European Union member states that use the euro.
Yannis Stournaras
He serves as the Governor of the Bank of Greece and is a member of the Governing Council of the European Central Bank.
The details
Persian Gulf LNG export constraints have tightened global markets, with shipping levels through the Strait of Hormuz remaining a volatile point despite a recent high. European importers and Asian buyers are competing for flexible LNG cargoes, a dynamic that forces industrial users to consider gas-to-coal switching to remain operational.
Timeline
Shipments through the Strait of Hormuz reached a six-month high in the past two weeks.
European Central Bank officials discussed a potential October rate rise last week.
Gas prices face upward pressure throughout this winter.
Year-end marks the target date for the latest Goldman Sachs price forecasts.
Market Landscape
The volatility in global LNG markets follows a pattern established by previous energy supply shocks that tested the European Central Bank's inflation-targeting mandate. This situation forces industrial sectors into a defensive posture that complicates global trade and monetary stability.
Rising gas prices could lead to increased costs for everyday goods as industrial manufacturers pass higher energy expenses on to consumers. Households may also see broader economic pressure if central banks implement interest rate hikes to combat the resulting inflation.
The takeaway
Energy price volatility remains a critical variable for both household budgets and global manufacturing stability this winter. Consumers should monitor energy-sensitive inflation metrics, as companies may adjust pricing strategies to offset rising operational costs.
Further reading
For more on the current state of global energy, visit our Oil and Gas section.
Source note: This article includes information reported by News & Analysis for Stocks, Crypto & Forex | investingLive.
Live Poll
Do you expect energy costs in your area to rise over the coming months?
