Natural Gas

The Iran war has damaged LNG production capacity and halted tanker flows through the Strait of Hormuz. We assess the conflict's impact on LNG markets over cyclical and structural horizons.

Higher oil prices threaten the global economy, warranting an underweight stance on equities. Over the long haul, industrial metals will fare better than crude.

Renewables’ role in power-hungry data centers is overstated. Natural gas will fill clean electricity’s data center supply shortfall, particularly in the US and Europe.

Israel’s attacks on Iran will continue until Iran is forced to strike regional oil supply to get the US to restrain Israel. That may not work. Investors should prepare for a broader economic impact of the conflict. 

Investors should hold gold, build up some cash, tactically overweight US equities relative to global, and prepare for at least minor oil supply shocks – possibly major shocks – as the Israel-Iran war escalates.

In this month’s Beta report, we continue our series supporting our bullish thesis on Europe. We take a deep dive into the aftermath of the European energy crisis – dispelling the myth that Europe faces risks of imminent deindustrialization – and evaluate the impact the approaching LNG wave will have on European industry and the global natural gas market.

This report looks at investment implications, for Norwegian assets, given the recent meeting, from the Norges Bank.