Cold winter and gas shortage to influence the rise in gas prices – Fitch – Business & Economy
MOSCOW, September 28. / TASS /. Gas prices in Europe, which for the first time in history have now exceeded $ 1,000 per 1,000 cubic meters, could continue to rise and break new records if the winter is cold and there is has a gas shortage, Fitch Senior Director for The Natural Resources and Raw Materials Group, Dmitry Marinchenko, told TASS on Tuesday.
“The biggest test will be in the winter for both gas prices and consumers. If it is cold and there is a physical shortage of gas, gas prices could rise even more,” said Marinchenko.
The current increase in gas prices in Europe could be the result of the approaching heating season and winter, Marinchenko notes.
In addition, “the price increase reflects the continuing competition between European and Asian LNG buyers, low supplies to European gas storage facilities and insufficient growth in supply from the largest gas suppliers in Europe, mainly Gazprom. “.
Earlier today, when trade opened, the price of gas in Europe for the first time in history exceeded $ 1,000 per 1,000 cubic meters. After that, the cost of October futures on the TTF hub in the Netherlands accelerated its growth to $ 1,031.3 per 1,000 cubic meters. The overall rise in gas prices since the start of the day has exceeded 11%.
In addition, earlier today, gas flow through the Yamal-Europe pipeline decreased by 50%. According to the European gas transport operator Gascade, the pumping of gas through Yamal – Europe has decreased by almost 60% compared to the previous day – to 1.45 million cubic meters per hour with just over 3, 4 million cubic meters per hour.
Gazprom board chairman Alexei Miller said that increased demand for gas as well as a severe delay in pumping gas to underground storage facilities in Europe has led to prices in Europe for this fuel have broken records and may exceed their values in the near future.