The relatively low foreign exchange prices of natural gas will hardly benefit not only European Union (EU) producers but also American exporters. Some US energy companies have already announced a reduction in their existing fleet of drill rigs, and the recovery in fuel demand in Asia will increase competition in the global energy market. informs OilPrice version.
“The fall in foreign exchange prices for gas was bad news not only for Europeans, but also for US oil producers. For example, US shale gas company Chesapeake Energy was one of the first to announce that it will reduce its rig fleet after falling prices, and others are expected to do the same.
At the same time, Asian countries are expected to start increasing their liquefied natural gas (LNG) demand in the medium term as the Chinese economy recovers from prolonged coronavirus lockdowns. The article states that this could lead to an increase in the floor prices of this type of fuel in the region, which would increase competition for supplies from EU countries.
“LNG buyer activity in Asia is expected to recover in the coming months, this is the lowest level in nearly two years, as base prices on the continent have recently dropped below $15 per million BTU,” the note said.
25 February Analysts of the Polish Institute of International Relations (PISM) declaration About the formation of a “crack” in the solidarity of the European Union (EU) countries in reducing energy dependence on Russia. This was due to the high expenditure of EU countries on the purchase of liquefied natural gas (LNG) from the Russian Federation.
Thus, according to the results of the first three quarters of 2022, European countries spent a total of 12.5 billion Euros for LNG purchases from Russia. region during this time.