Gas prices peaked in Europe: reasons given

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In Europe, prices for gas peaked: reasons named

Experts predict further growth in natural gas prices for 2021-2022.

The exchange price of gas on Monday, September 13, approached $ 730 per 1,000 cubic meters. m, which became a record for three and a half years – since the beginning of March 2018, when gas rose in price due to a strong cold snap in the EU and cost $ 555 per thousand cubic meters, Chronicle.info reports with reference to Today.

< p> According to the ICE stock exchange, the cost of the October futures on the TTF hub in the Netherlands has already reached $ 727 per 1,000 cubic meters. m.

Gas prices are growing rapidly. Back in August, the value of the contract & # 171; one day ahead & # 187; was $ 533, and at the beginning of September – already $ 639 per thousand cubic meters. Since the beginning of the year, the average price is $ 338 per thousand cubic meters.

In Europe, prices for gas reached its maximum: reasons named

Why the price is rising

According to experts, at this stage, the gas price for Europe is not affected by reports of the completion of construction & # 171; Gazprom & # 187; & # 171; Nord Stream 2 & # 187 ;. Now the main reason is the low level of gas reserves in underground storage facilities in Europe.

According to experts, just over a month remains before the transition from pumping to gas extraction from underground storage facilities, and the level of reserves barely exceeded 70%.

Note that last week the price of gas in the European futures market exceeded a record 700 dollars per thousand cubic meters. And in August, the price of gas for Europe set a record for three and a half years – from the beginning of March 2018, when gas rose in price due to a strong cold snap in the EU and cost $ 555 per thousand cubic meters.

Expert forecasts

Fitch Ratings predicts further growth in natural gas prices for 2021-2022 in Europe. Experts believe that the reasons for the growth were: bad weather conditions, stable reductions in the supply of liquefied gas from 2020 and a decrease in reserves in gas storage facilities below the level of 2019-2020.

In their opinion, an increase in gas supplies from Russia should not be expected until the end of 2021, since & # 171; Gazprom & # 187; has already increased exports to Europe to almost record levels: by 19% in January-August. Also, high competition for liquefied gas with the Asian and American regions will not allow in the short term to increase the supply of the resource to Europe.

& # 171; We expect that the current problems will persist in 2022, but next year the growth will not be so significant, thanks to the normalization of weather conditions and an increase in exports by Gazprom & # 187; – the message says.

And the head of the NAK & # 171; Naftogaz of Ukraine & # 187; Yuriy Vitrenko said that the record growth in spot gas prices in Europe is associated with limited supplies from Gazprom.

& # 171; We believe that the increase in prices , which we see now on the market, is a consequence of a virtually special campaign on the part of Gazprom, which simply restricts gas supplies to Europe & # 187 ;, – Vitrenko said.

In his opinion, in order to prices have become lower, EU representatives must achieve unblocking of other companies' access to transit through Ukraine and gas supplies from Central Asia.

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