At the beginning of May this year, European countries began purchasing natural gas less frequently than traditional rates during this period to replenish volumes in underground storage facilities (UGS). The drop came despite the drop in stock prices for gas, informs Bloomberg agency.
One of the reasons for such dynamics was the slow recovery of consumption of gas and other energy sources after crisis bottoms. The article states that under these circumstances, it is more profitable for households and businesses to expect an even greater drop in fuel stock prices.
“Purchases of natural gas required to replenish storage in Europe are slower than usual for this time of year despite the recent drop in prices with some buyers anticipating further declines. <….> Confidence that prices will continue to drop has led many buyers to wait to replenish their stocks before next winter.
On May 6, Reuters quoted the words of European Commission (EC) Vice-President Maros Sefcovic. reportedHe reported that the European Union (EU) has launched a joint gas purchasing mechanism to help countries fill their storage facilities for the upcoming heating season. In addition, fuel prices are expected to decrease thanks to this measure.